Backcountry Launches Brand Incubator with Coalatree Acquisition

✴︎

4.18.2026

Quick Facts

Backcountry launched ‘Backcountry Garage’ brand incubator with Coalatree as its first acquisition
Coalatree generated $13-15 million in annual revenue in 2025 with 9 employees
Move shifts Backcountry from pure retailer to brand operator targeting 50-60% private label margins

Backcountry has acquired eco-focused outdoor apparel brand Coalatree as the debut addition to its new brand incubator platform called ‘Backcountry Garage.’ The acquisition marks a strategic shift for the $850 million outdoor retailer from pure retail to brand development and operation.

Coalatree generated approximately $13-15 million in annual revenue in 2025 with just 9 employees. The brand, founded in 2010, creates sustainable outdoor gear including popular Trailhead Pants and 3-in-1 Kachula blankets.

‘The Coalatree community has helped shape every product we make,’ said JM Fabrizi, Coalatree’s president who now serves as Director of Backcountry Garage. ‘Partnering with Backcountry means Coalatree can stay close to that community, obtain feedback on a larger scale, and bring new ideas to life that were too big for Coalatree to tackle alone.’

The incubator model targets significantly higher profit margins. Private label brands typically deliver 50-60% gross margins compared to traditional retail margins of 25-30%. Backcountry currently generates 78% of its revenue through e-commerce across nearly 800 brands and nine U.S. locations.

CSC Generation Enterprise, which acquired Backcountry in September 2024, operates an AI-enabled multi-brand platform focused on transforming retailers into digital-first businesses. The parent company has expanded its portfolio to over ten brands through strategic acquisitions.

The outdoor retail sector faces growth headwinds. Industry sales grew just 3.2% in 2025, down from 8.5% in 2023. Total outdoor market retail sales reached $28 billion in 2024, up only 1% year-over-year.

Despite slower overall growth, consumer demand for sustainable products remains strong. Research shows 67% of outdoor shoppers will pay 10-20% premiums for sustainable goods, aligning with Coalatree’s eco-focused positioning.

Coalatree will maintain its direct-to-consumer website and distinct brand voice under the new partnership. Select products will also be available through Backcountry.com. The brand preservation strategy aims to protect Coalatree’s established community relationships while leveraging Backcountry’s distribution scale.

Backcountry previously expanded through acquisitions of Level Nine Sports and BikeTiresDirect in 2025, strengthening its snow sports and cycling categories. The Coalatree deal represents the company’s first move into brand incubation rather than traditional retail category expansion.