REI reports 14% sales increase
Recreational Equipment Inc (REI), a US retailer of outdoor equipment and clothing has announced 2010 sales of $1.66 billion, up 14% from $1.46 billion the previous year.
Operating income for the year was a record $115.4 million, an increase of 15% over $100.6 million in 2009. Net income in 2010 was $30.2 million, up 1.4% from $29.8 million in the previous year. The company’s direct sales channel, which includes online and catalogue sales, grew by 22.9%.
“REI achieved remarkable results last year in an economy that remained uncertain, and I credit the dedication and commitment of our more than 9,500 employees who are focused on serving our members and customers,” said Ivar Chhina, REI’s chief financial officer and executive vice president. “Our performance positions REI well for ongoing strategic growth and business investments. As the nation’s largest consumer cooperative, we are extremely pleased to also share our success with our members, communities and employees.”
Each year, REI shares its profits with its members through an annual patronage refund in proportion to their eligible purchases. Based on the co-op’s 2010 performance, $94.3 million in patronage refunds will be distributed to 4.4 million active members at the end of March, marking the co-op’s highest ever refund. While anyone may shop at REI, only members may share in the co-op’s profits. In addition, REI Visa card holders will receive $35 million in rebates from purchases using their REI Visa cards during last year. As a result, more than $129 million will be returned to REI members, an all-time high.
By year-end 2010, REI operated 114 stores, including four new stores in Arizona, Connecticut, Maryland and Montana. The company also relocated two stores last year in California and Montana. Seven new stores will open in 2011, in California, New Jersey, New York and Washington.
