REI loses money in 2000

“An article in my local newspaper stated that REI reported a loss of 11.4 million, down from a 10+ million profit last year. Article says that it's basically due to their strong efforts to corner the internet market for outdoor equipment. They went on to state that they would most assuredly be back in the black by this time next year.

That seems like a pretty big fluxuation to me. Does this happen a lot with big companies? I am completely ignorant when it comes to big business.”

“I smell a Going Out of Business Sale!

SUNDAAAY!
SUNDAAAY!
SUNDAAAY!

PRICES CUT TO THE INTERNAL FRAME!”

“switchback... hard to tell without knowing all the details, but in general a flux like that is not unusual. Some creative accountants may have held off on recording some "losses" last year... and many managers encourage creative accountants to record ALL the losses (and even estimates of BIGGER losses) in the BAD year, since it's already a bad year anyway. (Then, the next year, some bloke can hype the "strong turnaround vs. prior year".)

It's pretty much all a game.

Steadman, retired accountant”

“It seems to me that when some companies report a "loss", what they really mean is that they didn't make as much of a profit as last year. Maybe not the same in this case though, I don't know.”

“I understood that part of the reason for the big loss was due to them opening a huge, expensive store in Japan that had disappointing sales figures...”

“Seems like they shouldn't be giving out "dividends" to people if they're losing money.

BTW, I couldn't give a rat's ass about REI's survival. They'd never build a store in my area - not surburban or elitist enough.

But then again, I guess backpacking's a rich man's sport anyway.”

“I figured something like that happenend when the dividend this year was exactly 10.0%.”

“I don't know if this is relevant at all, but I am consistently disappointed in the women's gear offerings by REI and others. Look at the catalogs, there's always more stuff targeted towards men, especially in the technical clothing area. Maybe it's just because men buy more, but I can't help wondering if women would buy more if there were more (good) choices offered. A lot of the women's clothing seems to be designed more for fashion than function.”

“Boy OmaHiker I sure feel that way too. I got a new LLBean women's outdoor catalog yesterday. I was writing a letter to them in my mind telling them what I Really wanted. I just trashed it instead. They had descriptions like "lots of pockets" and no weights.”

“Yeah, like who wants pink parkas or bell-bottom fleece pants? I'd just buy men's gear but usually it's too long, too tight in the rear, too big in the waist, etc. I also find it amusing when the descriptions say "flattering to a woman's figure" as if there's going to be something sexy about a pair of rain pants worn over bulky fleece.”

“I did notice that REI has started selling womens clothing in bigger sizes. I think that's nice..everyone is not a size 6!”

“Omahiker for what its worth, REI stocks quite a bit of womens stuff in their store.It is just too pricey, Joy gets her clothing from campmor and sierra trading post.”

“My wife is has the business degree, and she thinks, like Steadman that it is a matter of accounting, but also about something called a "business cycle." And I'm not going to pretend I understand that, so I'm lacing up my boots.”

“I knew I saw it somewhere....

"REI operates 59 stores. Spokesman Mike Foley said as the company has expanded, it needed to better understand the regional markets in which it was operating.

REI lost $11.4 million last year, after posting a $10.4 million profit in 1999. Sales in 2000 were up 12.5 percent, to $698.3 million from $620.9 million.

REI officials said the company's earnings were dragged down by its online division and by the new store in Japan. The company has vowed to return to profitability this year."”

“Omahiker, my fiance really likes the clothes from Title 9 Sports. http://www.title9sports.com/”

“I like those clothes too but HOLY COW! they're expensive!”

“No dividend this year.”

“I suspect REI may be biting off more than they can chew. Opening and maintaining 59 stores is expensive no matter how you slice the pie. Employees are a valuable asset but are also the most costly espense for a business. Brick and mortar retailers fall off the ledger on a daily basis. Except for the giant retailers like Walmart, many retails are closing stores while REI continues to add more. An internet transaction is certainly more profitable but consumers, especailly outdoor types, prefer to try on gear in person. A difficult challenge for any company.

I'd guess REI will continue to add more and more self labeled products instead of hosting other brands. There is more profit and it eliminates the middle man. This was not the intention of the founding fathers of REI but times have changed. Business to business (B2B) is a costly proposition but will be mandated in this high tech era.

Despite these challenges, hopefully REI will indeed turn the corner and get back in the black. - John”

“I am going to violate Ice Tea's #1 rule.

REI either owns or is partners with several other brand names like MSR. I am not sure how this works and have no proof at the moment to back myself up, but I think that you may be supporting REI even if you have never bought anything from their store.”

“You say you have no proof but do you have any basis for your opinion? Did it come to you in a dream?”

“I read it somewhere(possibly their website), and that would be the basis for my opinion. I could not at the time and will not now bother to go and research it. I figured that others here would also be aware of it and lend a hand.”

“Okay, so I did go and research it.

Hoover's Online, (they have info on all sorts of companies), says that MSR, Walrus and Thaw Corp. are all subsidiary's of REI.

This is the only site I could find with company profiles. I'm sure there are others.

Anywho - that's all I know.”

“Whadayaknow.

Hoover's Online

Sorry about the dream crack.”

“dat's awrite.”

“Campmor!!! ;)”

“Would some one please explain why I got a "profit share" rebate if REI had such a horrible year? I don' understand the math.

REI looks like a bargin basement compared to Title9 and a couple of other "womens" catalog companies. Sorry but forty bucks for a sports bra is insane.

I must admit that most of the money I spend at any of the outdoor stores are during sales. My pockets just ain't that deep.

Viva STP and Campmor!”

“I wrote REI the other day asking them to come to my town or aleast come closer. The nearest one is over five hours away but yet they continue to flood the market in other city's. There is not a one in the Indiana, Ky., Oh. region as far as I know.
How many do they need in the L.A. basin or the Seattle area or Denver for that matter. I think you can over flood the market in some areas. Cincy is ripe for the pickins.
I know for sure that if they were to put a(one) store in this city it would do really well. When I look at a map and see where we sits in conjuction with other cities like Lexington, Louisville, Dayton, Columbus, Indianopolis and the surrounding Cincinnati metro area that incorporates southern Ind. and northern KY. I see alot of people that would make the drive be it an hour or an hour and half to shop at a speciality store. The New Bass tracker Store is drawing them in from all over. It is a speciality store and there is nothing like for hundreds of miles.

We have nothing here another than Dick's Sporting Goods and 2 Benchmarks outfitter stores and a new Bass Tracker Shop. Dicks's has nothing of value and Benchmarks as not enough variety and the Bass Tracker is not really a hiking and camping store.

Our town is scream for a specialized chain like REI. We have the market and the real estate for it. We don't need another major department store what we need is something like a REI or a LL Bean or Cabellos outlet type of store.

I have boycotted REI for this reason, sure mail ordering is nice but it would be nice to go to the store and see and kick the product before one was to invest.

Would you all do me and the city a favor and write REI and tell them to come to Cincinnati. I think I will have to mail something to their real estate department.”

“Seattle REI is having a "GEAR SWAP" April 21, 10am-1pm. Good time to sell or trade that gear that clutters up the closet. Great time to look for great gear cheap!”

“I haven't got my dividend yet, those SOB's!”