Welcome!

News Feed Item

REI Sales Top $2 Billion In 2013

More than $114 million shared with members through annual dividend

SEATTLE, March 17, 2014 /PRNewswire/ -- REI, the nation's leading specialty retailer of quality outdoor gear and apparel, achieved record annual sales of $2.0 billion in 2013, up 5.9 percent from $1.9 billion the previous year. Comparable store sales, inclusive of direct to consumer sales, increased 2.9 percent. Operating income, on a non-GAAP basis, excluding charitable donations, patronage dividends and non-comparable charges, was $153.3 million, up from $132.6 million in 2012. Likewise, net income, on a non-GAAP basis, was $34.5 million, up from $26.6 million in 2012. REI is a cooperative business with more than five million active members.

REI Logo.

"I'm proud of the results our teams produced in this dynamic retail environment," said Jerry Stritzke, REI's president and CEO. "We are working hard to enhance the connection we have with our members and customers, whether through inspiration in one of our stores, an easy and satisfying experience shopping at REI.com, or engaging with us via our mobile platform."

Members Share in the Co-op's Profitability

REI shares the majority of its operating income with its members through the declaration of an annual patronage refund. For 2013, REI declared an annual patronage refund of $114.7 million, a 10 percent increase over the previous year. Patronage refunds will be distributed to REI members in March, 2014. Anyone can shop at REI but only members share in the co-op's profits. 

The co-op celebrated its 75th anniversary in 2013 and welcomed more than 840,000 new members by the end of the year.

2013 REI Highlights

In 2013, REI opened new stores in Overland Park, Kan.; Tyson's Corner, Va.; Silverdale, Wash.; Jacksonville, Fla.; and Oxnard, Calif. As of year-end 2013, REI operated 132 stores in 33 states. In early 2014 REI closed its store in Brentwood, Calif.

For the 17th consecutive year FORTUNE magazine has ranked REI as one of the "100 Best Companies to Work For."  The co-op ranked #69 on the 2014 list.

REI-brand products earned national recognition in 2013, including an OutdoorGearLab.com "Top Pick" for the REI Stuff Travel Daypack 22. REI Private Brands and its cycling brand, Novara, which are only available at REI, offer outdoor products that combine high performance, value and innovation.

For more than 25 years REI Adventures, the co-op's award-winning travel company, has been taking members and families on active adventures around the world. As a global leader in guided active adventure travel, REI Adventures saw a 15 percent increase in sales last year that brought thousands of travelers to unforgettable destinations close to home and far away.

REI Outdoor School, which is the national leader in outdoor education, experienced sales growth of more than 25 percent last year through its in-store and field classes and presentations. REI Outdoor School offers thousands of unique classes and outings across the country to help people get ready for outdoor adventures. Classes range from How to Ride a Bike to Introduction to Rock Climbing, and outings include such activities as snowshoeing, kayaking and stand-up paddle-boarding.

In 2013, REI donated more than $3 million to national and community-based nonprofit organizations focused on caring for popular and accessible places where our members play. Since 1976, REI has provided more than $44 million of financial support to local and national non-profit organizations working on stewardship of natural and scenic places and outdoor recreation causes.

REI has a commitment to understanding and addressing its operating impact on the environment. Last year the co-op made good progress against this commitment. While the co-op grew nearly six percent in 2013 over 2012, REI increased its energy consumption by just 0.1 percent, reduced its greenhouse gas emissions by 39.5 percent and reduced the tons of waste it sends to landfills by 3.3 percent.

Selected Pro Forma Results

In December 2013, the REI Board of Directors approved a change in the co-op's fiscal year-end from a calendar year-end of Dec. 31 to a 52/53-week fiscal year ending on the Saturday closest to Dec. 31. Results reported in the audited financial statements for 2013 represent a transitional "stub-period" of Jan. 1, 2013 to Dec. 28, 2013 (362 days) and for 2012 are based on a calendar leap year (366 days). For comparative purposes in this press release, below are pro-forma results for both 2013 and 2012 on a 52-week period ending on the Saturday closest to Dec. 31.

In addition, the 2013 results presented below exclude non-comparable charges of $24.9 million related to the impact of the cancellation of the launch of a private brand and certain technology-related impairments. The information presented below provides REI members, employees and other interested parties with a comparable overview of REI's operational performance. REI's audited consolidated financial statements for 2012 and 2013 can be viewed at REI.com.

Unaudited/Non-GAAP

(in thousands of dollars)

Pro-Forma 2013

Pro-Forma 2012


Dec. 30, 2012 to

Dec. 28, 2013

Jan. 1, 2012 to

Dec. 29, 2012








Net sales

$ 2,030,279

$ 1,917,832


Gross profit

874,310

797,068


Operating expenses

721,058

664,431


Operating income

153,252

132,637






Patronage dividends, net

98,456

89,262






Income before income taxes

54,796

43,375






Net Income

$ 34,484

$ 26,591


About REI
REI is a $2 billion national multichannel retail co-op headquartered outside of Seattle. With more than 5 million active members, REI serves the needs of outdoor adventurers through innovative, quality products; inspiring classes and trips; and integrated customer service that allows shoppers to buy great gear and clothing in any way they want. REI has 131 stores in 33 states, as well as REI.com and REI.com/outlet. Anyone may shop with REI, while members pay a one-time $20 fee to receive a share in the company's profits through an annual patronage refund. Membership in the co-op also includes special promotions and discounts on REI Adventures trips and REI Outdoor School classes.

SOURCE REI

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone in...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.