That would represent an improvement over its recent performance, but it does signal that REI, a co-op beloved for its planet-friendly earnestness, store workers always eager to talk camping gear, and advocacy of the outdoors, is not yet out of the woods.
In 2023, REI bled money, losing $311 million, its second year of losses in a row while sales slipped 2.4% to $3.76 billion, hurt by a shrinking outdoor-gear market and REI’s own missteps. But perhaps more worryingly, there has been a growing sense for years of a company gone adrift, as evidenced by tense relations with many store workers, known as Green Vests for their easily identifiable clothing, amid an effort at some stores to unionize. Between 2022 and 2024, staff at 10 of REI’s 187 stores unionized, unhappy over matters such as raises, work schedules, and career paths.
While REI’s chairman Chris Carr praised Artz in a letter to employees and members “for navigating some of the most challenging times in retail and our industry,” many employees have felt differently about his tenure.
In Laughton, REI is getting a CEO experienced at running stores and websites—she has spent the last 18 months as head of Nike’s enormous global direct-to-consumer business, as well as heading up a business focused on social values. Athleta, which she led from October 2019 to April 2023 is a Certified B corporation, and under Laughton’s watch, the athleisure chain signed endorsement deals with athletes such as gymnast Simone Biles and sprinting champion Allyson Felix, who championed issues like mental health and female empowerment. And as a former REI director, she is already quite familiar with the company.
Still, while Laughton helped Athleta grow quickly initially, she left Gap Inc. almost two years ago amid a sales slide and what Gap Inc.’s interim CEO at the time, Bob Martin, called “product acceptance challenges over the past several quarters.” To be sure, it was a tumultuous period across Gap Inc., not just Athleta.
Laughton will have her hands full at REI. While the company has a lot of consumer goodwill to tap into, it has faced more aggressive competition from the likes of Cabela’s and Dick’s. But as a co-op, it has had a cost structure that makes it harder to compete with those rivals: REI has historically given back the equivalent of about 70% of profits each year in the form of dividends, employee bonuses, and investments in the outdoor industry, leaving it with much less room to maneuver.
“No other company balances purpose and performance quite like REI and we must ensure it thrives for generations to come,” Laughton wrote in a statement.
