L.L.Bean announced its fiscal 2004 sales results as well as its intention to pay performance bonuses to employees. For the 2004 fiscal year ending February 27, 2005, L.L.Bean reported record annual net sales of $1.4 billion, a 9% increase over 2003. The company also announced that its Board of Directors approved a cash award of 12.5% of annual pay to eligible employees, and a $150 cash award to seasonal employees.

“L.L.Bean’s Board of Directors voted unanimously to approve a well deserved employee bonus,” said Leon Gorman, L.L.Bean’s Chairman of the Board. “Our 2004 sales results are no small accomplishment, and Im pleased to announce that we are able to reward Bean people for achieving industry leading sales results and solid profitability in a very challenging retail environment.”

Chris McCormick, L.L.Bean’s President and CEO, also attributed much of the year’s success to the efforts of L.L.Bean employees. “Much of this year’s credit goes to our employees who served the customer during a record Christmas period which helped drive our sales increase,” he said. “And with the introduction of new colors, updated styles, improved pricing and renewed strength in the company’s hard-goods business, we made improvements in our product line that were well received by our customers.

“Our 2004 results tell an interesting story, and clearly illustrate the challenges we face moving forward,” he continued. “On one hand, there are many notable achievements here. Our top line growth and market share performance were outstanding, and our brand’s visibility has never been higher. All sales channels – catalog, web, and retail – delivered positive year over year results, and we added many new customers in the process.

“On the other hand, our ability to achieve these results is ever more challenging and coming at an increasing cost. We continue to operate in a price deflationary retail environment, which puts significant pressure on margins and operations. As a result , we are spending more marketing dollars than ever to drive unit sales while making considerable investments in new technologies and marketing initiatives to deliver future sales growth. The retail business climate is very competitive; therefore, we are positioning L.L.Bean to effectively respond.”

In a look forward, McCormick described L.L.Bean’s market growth strategies including investments in retail expansion and technology initiatives. “The company has budgeted to add six (6) first-line retail store locations in the 2005-2007 period,” he said. “These additions will begin with a factory store conversion in West Lebanon, New Hampshire in 2005, followed by two new stores in 2006 and three in 2007.”

All new store additions are planned for the New England/Mid-Atlantic region. L.L.Bean is also planning significant increases in technology investments designed to position the company as a leading multi-channel retailer. These investments include upgrades to the speed and capacity of the company’s website, L.L.Bean’s fastest growing channel. Investments in customer service technology, retail point-of-service systems, and customer database capabilities are also planned.

L.L.Bean’s Board of Directors approved the 12.5% bonus to cover nearly 4,700 eligible employees. Any employee who worked a minimum of one thousand hours in the 2004 calendar year and who was actively employed through December 2004 will receive the performance bonus. Nearly 5,600 seasonal employees who worked through the end of the peak season will receive the $150.00 cash award. Bonus disbursements to employees will be made on Friday, March 25, 2005.

2004 L.L.Bean Year in Review

  • 2004 company net sales a record $1.41 billion – a 9% increase over 2003 net sales of $1.3 billion.
  • 2004 same store retail sales posted a 7 % gain over 2003.
  • Single largest year ever for new customer acquisition.

Audited 5 Year net sales history:

  • 2000: $1.17
  • 2001: $1.2
  • 2002: $1.17
  • 2003: $1.3
  • 2004: $1.41