REI names former Nike exec as new CEO

REI Co-op has tapped Mary Beth Laughton, a seasoned retail executive who has held roles at Nike, Athleta and Sephora, to serve as its next CEO.

Laughton will assume the role of REI’s president on Feb. 3, the retailer announced, before transitioning to full CEO responsibilities on March 31. She succeeds Eric Artz, who has served as REI’s president and CEO since 2019. Artz plans to retire in March, the company said.

“Eric has led and stabilized REI through some of the most challenging years the retail sector and our co-op ever faced,” said Chris Carr, chair of the REI board of directors, in the announcement. Carr added that Laughton “has the ideal experience to build on this foundation and to lead REI forward into our next chapter.”

The leadership change comes as the 87-year-old outdoor retailer works to chart a fresh path following financial challenges after the pandemic.

REI — with 18 million lifetime members — is the largest customer-owned retail co-op in the U.S., according to the National Retail Cooperative Association.

The company ranks No. 58 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by web sales. In the Top 1000, Digital Commerce 360 classifies REI as a Sporting Goods retailer.

REI web sales by year

Who is REI’s new CEO?

Mary Beth Laughton, incoming CEO at REI Co-op | Image credit: REI

Laughton brings with her more than two decades of retail leadership experience, having worked with some of the world’s most recognizable brands.

Most recently, Laughton led Nike’s global direct-to-consumer business, overseeing stores, Nike.com, apps and loyalty programs, according to her LinkedIn profile.

Before joining Nike, Laughton was president and CEO of Athleta, Gap Inc.’s activewear brand, from October 2019 to April 2023.

Laughton also spent over seven years at Sephora, where she held several leadership roles, including executive vice president of omni retail, overseeing both U.S. stores and digital operations.

Her connection to REI predates her new role. Laughton was a member of the co-op’s board of directors from 2017 to 2019. She has also served on the boards of Instacart and Impossible Foods, per her LinkedIn profile.

During the leadership transition at REI, Laughton will visit stores and distribution centers to connect with employees, partners, and community members, the company said.

“From my time on the REI Board, I know how incredibly talented and passionate REI employees are,” Laughton wrote on LinkedIn. “I can’t wait to join them in the next phase of this journey and build on the positive momentum already underway.”

Artz’s leadership and REI’s uphill battle

Artz departs REI after more than a decade. He joined the co-op in 2012 and was named CEO in 2019. Before joining REI, Artz served as chief financial officer at Urban Outfitters and held leadership roles at VF Corp., the parent company of The North Face.

In a letter to employees, Artz expressed gratitude for his time at REI.

“Serving you and this enduring organization has been the honor of my professional life,” Artz said. “Being outside means something different for everyone and our job is not to tell people what that looks like. It is to show one another and to welcome others, always making time outside more accessible to more people in more ways. That is worth fighting for.”

Artz’s tenure included progress on sustainability goals. According to REI, the co-op’s emissions in 2023 were 10% lower than in 2022 and 6% lower than in its 2019 baseline year.

Artz’s time at the company was also marked by financial challenges in the wake of the COVID-19 pandemic. The co-op reported $3.76 billion in revenue in 2023, a 2.4% decrease from 2022, and a $311 million net loss for the year. According to the company, the loss stemmed from ongoing investments in employee hourly pay, member rewards, and a $169 million non-cash valuation allowance against its deferred tax assets.

Recent layoffs at REI

REI has responded with various cost-cutting strategies, including layoffs. Earlier this month, the co-op announced it would discontinue its REI Experiences program, which offered outdoor classes, tours, and adventure travel. The decision resulted in the elimination of 428 jobs.

Despite the setbacks, REI remains optimistic about its financial outlook. Earlier this week, the company said it is on track to achieve its 2024 goals of break-even operating profit and near-break-even free cash flow, describing them as “a significant improvement” over 2023.

The company added: “As REI moves through this transition, the board and executive leadership team remain focused on ensuring stability for its employees, members, and partners while building on the growth the co-op saw at the end of 2024.”

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