L.L. Bean had one of its most productive years in the companys 92 year history, posting a 10% increase in sales to $1.2 billion. Sales in all channels were up over 2002, with the companys e-commerce business jumping 26% and retail division up 12% for the year. All of the individual L.L. Bean regional stores posted new single day sales records in December, including a record of $1.1 million at the Freeport, ME flagship store.
A large portion of this increase in sales is going straight to the employees that helped make it happen. Eligible employees are being given a 15% cash bonus, while the remainder are being given cash gifts. Bean will distribute over $36 million to employees.
L.L. Bean also announced that it is contributing $19 million in 2003 profit toward its pension benefit fund. “While this contribution actually puts the fund well ahead of actuarial standards, our employees deserve the security this fund affords them,” said Beans President and CEO, Chris McCormick. “Over the past 5 years we've made considerable enhancements to 401k match funds, while maintaining a defined pension benefit. Today's announcements by the board amount to a $55 million investment in the economic welfare of Bean employees.”
The company cited improvements in pricing, retail merchandising, catalog marketing and lower liquidation costs among the many drivers behind the year's results. The Christmas season boosted sales as well, with the company posting the best December in its history, 8% higher than the previous record set in 2002.
