L.L. Bean reported net sales of $1.47 billion for its 2005 fiscal year ended February 26, a 4% increase over 2004 net sales of $1.41 billion. L.L. Beans e-commerce site became its primary sales channel for the first time this year, out-stripping brick & mortar and catalog sales during the month of December. Online sales increased 28% for the year. The retailer also added more new customers during 2005 than it has in its history.
Chris McCormick, L.L. Beans president and CEO, said, “We made impressive strides and grew the business in the face of significant challenges. The repercussions of major world events such as Hurricane Katrina and their role in rising energy costs and consumer confidence in general created a lot of uncertainty for all retailers. In response to these conditions we implemented marketing contingencies that included an unconditional free shipping promotion in November and December. While very risky and rather costly, it turned out to be a risk worth taking.”
The company also announced that its Board of Directors approved a cash award of 8% of annual pay to 4,700 eligible employees. Any employee who worked a minimum of one thousand hours in the 2005 calendar year and who was actively employed through December 2005 will receive the performance bonus.
Last month, L.L. Bean announced several new developments that will unfold in 2006. Among them, the company announced plans to open five new stores over the next 18 months in the states of Massachusetts, Pennsylvania, and Connecticut. The company also has plans to expand operations in its hometown of Freeport Maine, including a 330,000 square foot expansion to its distribution operation; property acquisition on Main Street that will enable a revamp of its retail campus; and the intent to use property it owns elsewhere in town to build a parking garage and 100,000 square feet of non-L.L. Bean retail space.
