Sales increased to 15% during the year, from $887 million to just over $1 billion, which is a first for the 67-year-old coop. Operating income increased about 19%, from $72 million to $86 million, and profit (net income) increased by 29.3%, from $25.3 million to $32.7 million.

Comparable store sales growth jumped to 9.6% from 5.3% in 2004. The growth rate was about three times the national retail average. Direct sales posted an overall gain of 20.7%, led by its two Web sites, REI.com and REI-OUTLET.com.

"REI had an amazing 2005, says REI chief executive Sally Jewell, who assumed the post this time last year. "Having liquidated our final piece of long-term debt, we…find ourselves debt-free for the first time since 1985."

REI opened six new retail stores in 2005, in Bend, OR; Huntington Beach, CA; Marlton, NJ; Pittsburgh, PA; Plano, TX; and Raleigh, NC. It also announced plans for an eastern region distribution center in Bedford, PA.

On the employee side in 2005, REI extended health benefits to all part-time employees. The helped net netted the company a top 10 ranking on FORTUNE magazine's list of the "100 Best Companies to Work for in America." The coop has been included in the rankings for nine consecutive years.

A company source tells GlobeSt.com that in 2006 the company plans to open eight new stores and remodel eight existing ones. The new stores already announced include two in California (Santa Monica and Mountain View), two in North Carolina (Pineville and Greensboro) and one in Maple Grove, MN.

Instant Insights /

Outdoor Retailer REI Calls 2005 'Amazing'

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