REI Co-op Releases 2023 Impact Report and Financials, Reporting $3.76 Billion in Revenue

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Apr 30, 2024, 09:00 ET

Co-op furthers commitment to creating positive impact by investing in employees, partners and members

SEATTLE, April 30, 2024 /PRNewswire/ -- REI Co-op today released its 2023 Impact Report and financial results, closing the year with $3.76 billion in net sales and nearly $270 million invested back into the co-op community.

"As I reflect on the remarkable results shared in our Impact Report, I am filled with gratitude for the unwavering dedication of our employees and the support of our members, partners, and the entire co-op community," said Eric Artz, President and CEO. "2023 was a year of both growth and challenges for REI. Despite these challenges, the co-op remained committed to increasing hourly pay for employees, making progress against our climate goals and supporting our nonprofit partners."

Re-imagining the employee experience

REI invested heavily in its workforce last year, broadening its efforts to reimagine the employee experience and ensure its staff felt heard, supported, and set up for success. The co-op remained committed to increasing hourly employee pay, regardless of company performance, and distributed $57 million in employee retirement and incentives.

Throughout the year, more than 15,000 employees across the co-op furthered their personal racial equity journeys by engaging with the Co-op Racial Equity, Diversity & Inclusion (REDI) Learning Series, which featured five in-depth topics such as Race & Racism in the Outdoors and Implicit Bias.

REI continues to be recognized as a leading employer. In 2023, the co-op earned the top spot on the Forbes list of Best Brands for Social Impact and was recognized as one of the outlet's Best Employers for Diversity & Women and America's Best-In State Employers.

Harnessing the cooperative spirit to fight the climate crisis

REI made significant progress towards reaching its aggressive climate goals, with 2023 emissions coming down 10% compared to 2022 and 6% lower than emissions in its 2019 baseline year. This year marks the first time REI is reporting a decrease in its emissions alongside an increase in revenue over its baseline year. The co-op is achieving its ultimate goal of growing its business while lowering emissions.

Also in 2023, REI celebrated its 11th year of powering U.S. operations with 100% renewable electricity and continued working to make local renewable energy more accessible everywhere it operates. It also achieved Climate Neutral certification for the fourth year in a row and diverted 86% of operational waste from landfills— remaining on track to meet its goal of being a Zero Waste organization by 2025.

The co-op also celebrated a first-of-its-kind, multi-year carbon partnership with BioLite to manufacture and distribute 30,000 clean cookstoves to households across sub-Saharan Africa. This new project is an example of REI's ability to drive broader societal impact on a global scale by working directly with industry partners to avoid emissions at the source while improving health outcomes for individuals and communities.

REI continues engaging partners in this work, collaborating with other brands, retailers, and manufacturers to develop and scale best practices. The co-op's Product Impact Standards outline expectations for brand partners regarding sustainability and inclusion and identify leading sustainability attributes that REI prioritizes in its product assortment. In 2023, almost 53% of sales came from products with at least one sustainability attribute and 63% of sales volume came from brands that have science-aligned emissions reduction targets in place. The co-op regularly updates the standards to incorporate the latest best practices and leading innovations. In last year's update, REI elevated chemicals management expectations.

Another way that REI is preserving the long-term health of the planet is through its Re/Supply program, which helps the co-op—and its members—lower their collective carbon impact by maximizing the life of products that have already been made. REI has Re/Supply sections in nearly all retail locations and opened its second standalone Re/Supply store in Oregon last year, joining the co-op's first Re/Supply store that opened in California in 2020. The co-op sells more than one million used items each year and Re/Supply sales continue to see double-digit growth year over year as the co-op makes progress towards its goal of decoupling continued business growth from carbon impact.

Mobilizing the co-op community for societal impact

REI worked to strengthen and harmonize the advocacy efforts of its nonprofit partners and the outdoor industry in 2023.

The Cooperative Action Network helped REI's community send over 500,000 messages to elected officials over the last year, leading to eight historic legislative victories for the outdoors. These included REI supporting the Grand Canyon Tribal Coalition in their efforts to protect nearly one million acres of Tribal lands through the designation of Baaj Nwaavjo I'tah Kukveni – Ancestral Footprints of the Grand Canyon National Monument, local e-bike incentives in Minnesota and Atlanta, and more than $1 billion in funding for parks and conservation in Texas and South Carolina. The co-op donated $6 million to the REI Cooperative Action Fund, which supports local, regional and national nonprofits creating a more equitable outdoors for everyone.

The co-op also continued its work to accelerate the success of founders of color in the outdoor industry. Through Path Ahead Ventures, which provides full-spectrum support to startups owned and led by Black, Indigenous, Latina/o/x, Asian American and Pacific Islander founders, REI has committed $30 million by 2030 to accelerate the success of founders of color. So far, REI has invested $4 million in 74 founders, helping 65 companies grow. Funding is just one part of supporting these founders. Path Ahead Ventures also provides programming to help aspiring entrepreneurs get started on their journey and offers a community space, enabling them to stay connected as they continue building their businesses.

REI also launched Outside in 5 in 2023, a multiyear, nationwide initiative that strives to ensure every American has immediate access to outdoor spaces. Over 100 million people in the U.S. lack such access today. Through Outside in 5, REI supports local projects and national legislation in pursuit of a goal of getting every one of them outside in five minutes or less, no matter where they live.

Full audited financials for 2023 are available here. Explore the co-op's full Impact Report at rei.com/impact.

2023 by the numbers:

Invested $57M in employee retirement and performance incentives
Added 1.3M new members and distributed $200M through Co-op Member Reward
Reduced 2023 emissions by 10% when compared to 2022 emissions, and 6% when compared to REI's 2019 baseline year
Invested over $6M in 74 local, regional and national nonprofits through the Cooperative Action Fund
Donated $2.95M to 85 nonprofit partners through REI Co-op investment in advocacy & movement building partners
Distributed 500,000 messages to decision makers through the Cooperative Action Network, helping pass eight bills
The co-op reported $3.76 billion in revenue in 2023, a 2.4% decrease from 2022. The co-op reported a $311 million net loss in 2023. That loss was largely driven by three factors: REI's commitment to continue investing in hourly employee pay, commitment to providing a member reward, and a $169 million non-cash valuation allowance against its deferred tax assets.
The $169 million non-cash valuation allowance is a reserve against REI's future tax credits. This reserve is required under current accounting guidance, however the co-op continues to believe it will be able to use the majority of these tax credits in the future when it returns to profitability. At such time as the co-op returns to profitability, the co-op can use these deferred tax assets, and reverse the related valuation allowance accordingly. Added 1.3M new members and distributed $200M through Co-op Member Reward.

About REI Co-op

REI is a specialty outdoor retailer, headquartered near Seattle. The nation's largest consumer co-op, REI is a growing community of 24 million members who expect and love the best quality gear, inspiring expert classes and trips, and outstanding customer service. If you can't visit one of our many stores, you can shop at REI.com, REI Outlet or the REI shopping app. Everyone is welcome to shop REI, but members who join the co-op enjoy a range of benefits. More than a retailer, REI is a purpose-driven and values-led company, dedicated to enabling life outside for all.

SOURCE REI Co-op