Cooperative outdoor gear and apparel cataloger/retailer Recreational Equipment Inc. (REI) brought some bad news with some good news Wednesday.
The company’s 2008 sales increased 6.9% over the prior year, but a 31% drop in operating income and a flat holiday season sales-wise forced it to eliminate positions in its home office. REI president/CEO Sally Jewel said in a release that the company has cut 61 full-time positions, or about 2% of its workforce.
REI’s operating income for 2008 decreased 31% to $73.6 million from $106.5 million the prior year. Its net income of $14.5 million was down 65% from $41.4 million in 2007.
But the Kent, WA-based merchant’s direct sales channel, which includes online and catalog, grew by 14.2% while comp store sales increased by 0.3% in 2008.
Jewel said that REI’s business plan for 2009 is generally flat to last year. In addition to the staff reductions, the company will defer raises for headquarters and management staff, and only hire critical staff positions.
Editor’s note: This article was updated with the correct figure for REI’s operating income for 2007.