Specialty outdoor retailer REI Co-op narrowed its net loss in the last fiscal year, with management praising the ongoing plan to return the company to profitability.

The company’s net loss stood at $54.3 million in FY25, a $102 million reduction compared to the prior year. It also delivered two profitable quarters in the second half.

Net sales for the year were $3.54 billion, up slightly from FY24. Gross profit rose 7 per cent to $1.52 billion, driven primarily by full-price selling, operating discipline and inventory management.

Management attributed the improvements to the company’s ‘Peak 28’ three-year strategic plan, which sharpens priorities around product, service and the membership experience while maintaining disciplined investment.

“We’re seeing clear signs that our plan is working, strengthening the business now and shaping a stronger future for the co-op,” said Mary Beth Laughton, president and CEO of REI Co‑op. 

“Alongside that progress, employees and members continue to live our values by showing up for public lands and protecting access to the outdoors for generations to come,” Laughton added.

During the year, the retailer opened six stores, including four net-new stores in New York, Colorado and California, and two relocations in California and Washington.

The company also invested more than $300 million in members, employees and communities through member rewards, performance incentives and retirement contributions, reinforcing the connection between financial performance and long-term impact.