SEATTLE (BRAIN) — REI Co-op reported a net loss of $311 million in 2023 with yearly revenues declining 2.4% compared with the previous year.
According to REI, the loss was because of a commitment to increasing hourly pay for employees, providing member rewards, and a $169 million non-cash valuation allowance against its deferred taxes.
The non-cash valuation allowance is a reserve against future tax credits. REI said it will use the majority of the credits when it returns to profitability. REI's net loss in 2022 was $165 million.
Revenues for 2023 were $3.76 billion, compared with $3.85 billion the previous year. REI added 1.3 million new members, bringing its total to 24 million. REI distributed $57 million in employee retirement and incentives and $200 million through its member rewards program.
REI also released its 2023 impact report, saying it made progress toward reaching its climate goals. Emissions were reduced by 10% compared with 2022, REI said, and 6% lower than in its 2019 baseline year.
In a memo to employees in January, CEO Eric Artz warned of a challenging year ahead, when announcing the layoff of 357 non-retail employees. Last October, REI cut 275 jobs, mostly from retail stores, during a restructuring of store roles. In January 2023, the co-op laid off about 8% of its headquarters' workforce, impacting 167 leaders and employees.
