L.L. Beans sales fell 6.6% to approximately $1.4 million in 2009 from $1.5 million in 2008.  According to a company statement, President and CEO Chris McCormick told employees that strong sales in January and February helped the company beat its profitability goals, and 5,000 employees are eligible for a 3% cash bonus.  A few months ago the prospect of paying a bonus seemed remote, and we feel very fortunate to be in this position today, wrote McCormick. While we face many challenges ahead as the economy continues its slow recovery, we are optimistic about the future.

 

McCormick said L.L. Bean finished Spring down 2% from budget, but the company was encouraged to see strength return to the business in September and enjoyed a record-setting October.  Among the other highlights of the year was that Internet sales surpassed catalog orders for the first time. Considerable upgrades were made to the Web to support this transition and made for a more positive shopping experience, McCormick said.

 

We revised the holiday forecast in accord with this early Fall strength, only to see sales trend downward again in November and December – two of our most critical months of the year, said McCormick. Peak was disappointing, as consumers were lured by deep discounting in the retail industry. Given our conservative inventory position, we chose to be more selective in our promotions and did not sacrifice margins for volume. Our strategy paid off, as 2010 began with customers returning to L.L. Bean in search of value and quality, resulting in our best January and February in years. Strong full-price sales enabled us to regain a good amount of the ground wed lost in November and December.

 

LLB also opened its Dedham retail store, a stand-alone Home Store on the Freeport campus, a new Kids department in the Freeport flagship store, a new Data Center, and 41 stores in China. Freeport Village Station, including a new L.L. Bean Outlet, opened in May, one of the few outdoor lifestyle malls to open in the country in 2009.

 

2010 is seen as a rebuilding and reinvesting year for the outdoor retailer.