Upheaval, Resilience and Community: 2025’s Biggest Surf and Outdoor Industry Stories

AFFTA is sharing this article as it offers a timely perspective on the broader outdoor retail landscape and the market forces shaping specialty businesses heading into 2026. While focused beyond fly fishing alone, the themes of correction, resilience, and community closely mirror the challenges and opportunities AFFTA members are navigating. 

This content is reprinted from Shop Eat Surf Outdoor for the benefit of our membership.

As we look back on a year of challenges and opportunities, one thing is clear: the surf and outdoor industries are adaptive, stronger together, and poised for another never-boring year. 

2025 has been nothing short of transformative for most of the businesses SESO covers in the surf and outdoor industries, marked by massive restructures, strategic pivots, and bold leadership decisions. From the bankruptcy of Liberated Brands at the start of the year to ongoing turnarounds at VF Corp. and Nike, and to the tariff roller coaster, both surf and outdoor have experienced sweeping changes that are reshaping the landscape. Retailers like REI and Christy Sports are doubling down on their core strengths, while brands like Rip Curl have brought in new leadership to adapt to evolving market dynamics. Amidst these shifts, community and collaboration have remained central themes. Industry events like Surf Expo and Outdoor Retailer provided platforms for connection and innovation, while initiatives like SESO’s “Young Leaders to Watch” celebrated emerging talent and fostered a sense of unity online. As we look back on a year of challenges and opportunities, one thing is clear: the surf and outdoor industries are resilient, adaptive, and poised for another never-boring year.

Liberated Brands Bankruptcy

The bankruptcy of Liberated Brands made a major impact in the surf and skate industry this year. Once a major licensee for iconic brands like Billabong, Volcom, and RVCA, Liberated struggled under the weight of ambitious growth plans and operational challenges. The company filed for Chapter 11 bankruptcy in February, citing a volatile global economy and inflationary pressures as key factors. This led to the closure of over 100 U.S. retail locations and a media storm that created confusion among consumers and frustration among retailers. Authentic Brands Group, the owner of these legacy brands, swiftly transferred licenses to new operators, ensuring continuity. David Brooks, EVP of Authentic, emphasized the company’s commitment to the brands’ future, calling the transition the best path forward for the brands, their partners, and the consumers who love them. Liberated’s liquidation sales and restructuring efforts have left a lasting impact on the industry, reshaping the retail landscape for these brands.

REI’s New Leadership and Turnaround

REI Co-op faced a transformative year in 2025, marked by financial challenges, leadership changes, and a new strategy. Following a 6% revenue decline to $3.53 billion, former board director Mary Beth Laughton was appointed CEO in early 2025. She acknowledged the tough decisions ahead, which so far have included the closure of three stores, including the iconic SoHo flagship, as part of the newly unveiled “Peak 28: Ascending Together” strategy. This three-year plan focuses on rebuilding customer trust, refining product assortments, enhancing service, and reimagining the co-op’s membership program. After shuttering its Experiences division in January, which eliminated 400 jobs, REI announced a partnership with Intrepid Travel to offer adventure travel to members and customers. Laughton said the plan isn’t about returning to the past, but about climbing the challenging peak ahead and putting the co-op on more solid footing.

VF Corp. Layoffs and Turnaround

VF Corp — parent company to Vans and The North Face — continued efforts to stabilize and return to growth. The company sold its Dickies brand to Bluestar Alliance for $600 million as part of debt reduction, and layoffs affected hundreds of employees across brands and regions. Vans Global Brand President Sun Choe and The North Face President Caroline Brown outlined strategies to revitalize growth, with Brown focusing on apparel and equipment sales while tripling footwear revenue. Despite these challenges, VF’s core brands continue to show resilience and remain committed to long-term financial targets, including a 10% adjusted operating margin by 2028

Tariffs and Economic Uncertainty

“Uncertainty” was a common theme when SESO spoke with brands and retailers impacted by tariffs in 2025. From surfboards to outdoor gear, businesses grappled with rising costs, canceled orders, and paused production as new tariffs on imports from China and other countries disrupted supply chains. For some, proposed tariffs meant possible price hikes of up to 50% on products like wetsuits, while others faced halted production altogether. The ripple effects extended beyond pricing; Canadian brands saw U.S. wholesale business disruptions, and U.S. retailers navigated slumping consumer confidence, with one executive saying the level of uncertainty simply cannot last, as it prevents consistent short-, medium- and long-term decision-making.

Retailer Resilience and Restructuring

Retailers across surf and outdoor showed resilience and adaptability in 2025. Surf retailers like Hansen’s Surfboards diversified brand mixes to meet market changes, and Tillys appointed Nate Smith as CEO to lead its turnaround, achieving the first positive quarterly comparable net sales since 2021. On the outdoor side, Orvis cited tariff impacts and announced plans to focus on fly fishing and wingshooting while closing 36 stores by 2026 to streamline operations. Christy Sports cleaned up inventory and prioritized inclusivity to attract new participants to mountain sports, and Backcountry expanded its reach by acquiring value retailer Level Nine Sports. Mountain Equipment Company (MEC) returned to Canadian ownership and emphasized private-label products and regional needs, reflecting the broader industry trend of focusing on core strengths and customer needs to navigate economic challenges.

Executive Insights and Exclusive Interviews

SESO’s Executive Edition featured in-depth conversations with top executives sharing perspectives on navigating challenges, driving innovation, and positioning brands for the future. Patagonia President Jenna Johnson discussed the brand’s alignment of business practices with environmental values. Burton CEO John Lacy highlighted the advantages of private ownership during turbulent times. In the surf sector, Volcom co-founder Richard Woolcott shared reasons for investing in Florence, and Malbon Golf Co-Chief Creative Officer Erica Malbon discussed rapid growth and international expansion. On the outdoor side, Black Diamond President Neil Fiske and Mountain Hardwear’s Troy Sicotte described pricing strategies and rebrand successes, and D B’s CMO Jonathan Weaver outlined growth investments. SESO encouraged readers to subscribe for exclusive interviews, deep dives, and actionable insights

Stance Sale and Licensing Deals

The licensing landscape saw significant moves, notably the acquisition of Stance by Marquee Brands. Known for creative designs and celebrity collaborations, Stance will transition to a licensing model under Marquee. Marquee Brands’ CEO Heath Golden said Stance aligns with their acquisition strategy. Roxy launched a new product line, Roxy Dolls, at Target, and Dickies transitioned to a licensing model following its acquisition by Bluestar Alliance.

Surf Expo, Outdoor Retailer and Building Community

Industry events like Surf Expo and Outdoor Retailer highlighted the power of community and collaboration. These shows offered panels, networking, and trend insights, with Circana providing data and experts discussing market conditions. Outdoor Retailer will move to Minnesota next August under new leadership, and Surf Expo brought together surf and active-lifestyle brands in January and September for discussions on tariffs and growth strategies. The energy extended beyond the trade floor, with parties and retailer meetings fostering deeper connections. SESO also celebrated the community online with its inaugural “Young Leaders to Watch” feature, and plans to repeat the initiative in 2026.