Founded in 1973 by climber Yvon Chouinard, Patagonia began as a small company producing climbing gear under the name Great Pacific Iron Works. Headquartered in Ventura, California, it gradually evolved into a leading brand in outdoor apparel, known as much for its technical clothing as for its deep commitment to environmental responsibility. From its earliest years, Patagonia stood out by prioritizing sustainable design, transparency, and activism in a way that few corporations have matched.
The company operates as a private benefit corporation. In September 2022, Chouinard and his family took the unusual step of transferring ownership to two new entities: the Patagonia Purpose Trust, which holds all voting stock to safeguard the company’s values, and the Holdfast Collective, which owns the remaining non-voting shares. This unique structure ensures that the company’s annual profits are directed toward fighting climate change and protecting nature.
As of 2025, Patagonia generates annual revenue of around 1.5 billion dollars. Its e-commerce platform accounts for a significant portion of this, with online sales estimated at over 400 million dollars. The company employs approximately 3,000 people worldwide and operates retail stores in over ten countries. Though still a privately held company, Patagonia is considered a benchmark in both sustainability and responsible corporate governance.
Patagonia’s manufacturing operations span 16 countries, with a strong emphasis on ethical sourcing and renewable energy. Nearly all of its facilities now run on renewable electricity. The company has committed to eliminating per- and polyfluoroalkyl substances (PFAS) from all new product lines as of 2025. It has also made efforts to ensure that workers in its supply chain earn a living wage, though only about a third of apparel assembly factories currently meet this standard.
In parallel with its sustainability efforts, Patagonia has long championed a circular economy model. Through initiatives like Worn Wear and ReCrafted, the company repairs and resells used gear, or repurposes factory scraps into new products. It also offers lifetime guarantees on its garments, alongside repair services and garment recycling programs.
Environmental activism is a defining feature of Patagonia’s identity. The company donates one percent of its annual sales to grassroots environmental organizations, an initiative that has contributed over 200 million dollars to date. It actively campaigns on issues such as public lands protection and climate justice, and has not hesitated to take political stands. For example, it once sued the U.S. government to challenge reductions in national monument protections.
Despite its reputation, Patagonia has not been immune to controversy. Investigations into labor practices in recent years have revealed links to suppliers associated with alleged labor abuses in Sri Lanka and China. These findings have prompted calls for greater transparency, particularly in overseas operations.
The current CEO, Ryan Gellert, has led the company since 2020. Under his leadership, Patagonia has faced financial headwinds, including slowing sales and higher operating costs. In response, the company underwent two rounds of layoffs in 2024, affecting both retail and corporate staff. These decisions were met with concern internally, as they clashed with the company’s strong culture of community and values-based leadership.
Looking ahead, Patagonia remains committed to reaching carbon neutrality and increasing its use of recycled materials. While navigating the tension between commercial success and ethical ideals, it continues to serve as a model for what a purpose-driven company can look like in the 21st century.
