- REI announced Wednesday the company’s president and CEO, Eric Artz, will step down in March.
- Mary Beth Laughton, a former leader at Nike, Athleta, and Sephora, will take over as CEO.
- REI reported a decline in sales in 2023 and has recently had several rounds of layoffs.
REI Co-op, the outdoor retailer headquartered near Seattle, announced Wednesday that its President and CEO, Eric Artz, is stepping down in March and will be replaced by Mary Beth Laughton, a former executive at Nike and Athleta.
“Eric has led and stabilized REI through some of the most challenging years the retail sector and our co-op ever faced,” Chris Carr, chair of the REI board of directors, said in a statement. “REI is in a strong position today because he always kept our purpose, values, and people as his north star.”
“Mary Beth has the ideal experience to build on this foundation and to lead REI forward into our next chapter,” Carr added. “The world needs a strong REI, and we are confident Mary Beth will hit the ground running.”
Artz has served as president and CEO of REI since 2019 and has been at the company for 12 years. Prior to joining REI, he was the CFO of Urban Outfitters.
Laughton previously worked at Nike as the head of Nike Global Direct to Consumer. She also served as the president and CEO of Athleta from 2019 to 2023 and led Sephora’s US stores and digital operations. She previously served as an REI board member from 2017 to 2019.
“No other company balances purpose and performance quite like REI, and we must ensure it thrives for generations to come,” Laughton said in a statement.
Laughton joins REI as the company faces financial struggles and has undergone several rounds of layoffs in the past couple of years.
REI reported $3.76 billion in revenue in 2023, marking a 2.4% decrease from 2022. Its 2024 financials have not yet been reported, but Artz previously said the company expected a decline in revenue compared to 2023. The company also reported net losses in both 2022 and 2023.
In October 2023, REI laid off around 275 employees, while another 357 were laid off in January 2024. This month REI announced it was shutting down its experiences business and laying off more than 400 employees.
The company has attributed its challenges to industry-wide declines in outdoor specialty retail as well as its commitment to paying its hourly employees well, among other factors.
Still, REI continues to expand, with six store openings planned for 2025 and at least two in 2026.
REI didn’t immediately respond to Business Insider’s request for comment.
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