L.L. Bean Sets Record Revenue Level in Fiscal 2003

March 15, 2004
SGB Update

L.L.Bean reported net sales for the fiscal year ending February 29, 2004 increased 10% to $1.2 billion. The company also announced that its Board of Directors approved a cash award of 15% of annual pay to eligible employees, and cash gifts to recognize thousands of seasonal employees who did not meet eligibility requirements for the larger payout.

“L.L.Bean's Board of Directors couldn't be more pleased with the year's performance and voted unanimously to approve a bonus of 15%,” said Leon Gorman, L.L.Bean's Chairman of the Board. “This is a well deserved reward for the great Bean people who achieved exceptional results in a very challenging retail environment. I couldn't be more proud of what they have accomplished.”

L.L.Bean's President and CEO, Chris McCormick, echoed Mr. Gorman's sentiment. “The credit for this performance starts and ends with Bean employees,” he said. “We feel very good about our business strategy. But a good game plan is nothing without people who are ready to respond to the challenge of the day. We remain committed to our customer focus in an extremely competitive retail market, and Bean people — especially those in our operational areas — were responsible for servicing record numbers of customers in each channel of our operation. It has been an amazing year, and we are especially happy to recognize the many seasonal employees who are so important to our business.”

The company cited improvements in pricing, retail merchandising, catalog marketing and lower liquidation costs among the many drivers behind the year's results. Sales in all channels were up over 2002, with L.L.Bean's e-commerce and retail divisions posting gains of 26% and 12% respectively. “All channels outperformed even our highest expectations,” continues McCormick. “Everything seemed to fall into place when we needed it to, including the weather. And we brought in thousands of new customers, which bodes extremely well for our future. When you add that to a record spring in terms of profit, 2003 was a home run.”

With record sales will come a record allocation of company funds for discretionary employee performance bonuses. L.L.Bean's Board of Directors has approved a payout totaling $36million — the single largest end of year payout in the company's 92 year history. To thank seasonal employees, L.L.Bean will also award an appreciation gift of $165.00 to people who worked during the 2003 holiday peak but who did not meet the discretionary bonus requirement.

As a company that continues with a defined pension benefit plan, L.L.Bean also announced that it is contributing $19million in 2003 profit toward the fund. “While this contribution actually puts the fund well ahead of actuarial standards, our employees deserve the security this fund affords them,” concludes 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 $55million investment in the economic welfare of Bean employees. That's something we can all celebrate.”

Any employee who worked a minimum of one thousand hours in the 2003 calendar year and who was actively employed through December, 2003 will receive the performance bonus. Over nine thousand L.L.Bean employees will receive payouts totaling $36million on Friday, March 26.

Other Key Metrics:

  • Fiscal 2003 had largest year over year sales increase since 1995 (11%).
  • The company's previous high water mark for annual net sales was $1.14 billion in 2001.
  • 2003 Bonus payout of $36 million is the largest since 1994 when the company disbursed $26 million on annual net sales of $976million.
  • L.L.Bean had best December in company history (+8% over 2002, the prior record)
  • All L.L.Bean regional stores post new single day sales records, including a single day sales record of $1.1 million at Freeport flagship store
  • llbean.com tops 50,000 orders in a day four times during December holiday peak
  • L.L.Bean ships 175,000 packages on its single busiest day during holiday sales period

L.L. Bean Sets Record Revenue Level in Fiscal 2003

March 11, 2004
SGB Executive
by

L.L.Bean reported net sales for the fiscal year ending February 29, 2004 increased 10% to $1.2 billion. The company also announced that its Board of Directors approved a cash award of 15% of annual pay to eligible employees, and cash gifts to recognize thousands of seasonal employees who did not meet eligibility requirements for the larger payout.

“L.L.Bean's Board of Directors couldn't be more pleased with the year's performance and voted unanimously to approve a bonus of 15%,” said Leon Gorman, L.L.Bean's Chairman of the Board. “This is a well deserved reward for the great Bean people who achieved exceptional results in a very challenging retail environment. I couldn't be more proud of what they have accomplished.”

L.L.Bean's President and CEO, Chris McCormick, echoed Mr. Gorman's sentiment. “The credit for this performance starts and ends with Bean employees,” he said. “We feel very good about our business strategy. But a good game plan is nothing without people who are ready to respond to the challenge of the day. We remain committed to our customer focus in an extremely competitive retail market, and Bean people — especially those in our operational areas — were responsible for servicing record numbers of customers in each channel of our operation. It has been an amazing year, and we are especially happy to recognize the many seasonal employees who are so important to our business.”

The company cited improvements in pricing, retail merchandising, catalog marketing and lower liquidation costs among the many drivers behind the year's results. Sales in all channels were up over 2002, with L.L.Bean's e-commerce and retail divisions posting gains of 26% and 12% respectively. “All channels outperformed even our highest expectations,” continues McCormick. “Everything seemed to fall into place when we needed it to, including the weather. And we brought in thousands of new customers, which bodes extremely well for our future. When you add that to a record spring in terms of profit, 2003 was a home run.”

With record sales will come a record allocation of company funds for discretionary employee performance bonuses. L.L.Bean's Board of Directors has approved a payout totaling $36million — the single largest end of year payout in the company's 92 year history. To thank seasonal employees, L.L.Bean will also award an appreciation gift of $165.00 to people who worked during the 2003 holiday peak but who did not meet the discretionary bonus requirement.

As a company that continues with a defined pension benefit plan, L.L.Bean also announced that it is contributing $19million in 2003 profit toward the fund. “While this contribution actually puts the fund well ahead of actuarial standards, our employees deserve the security this fund affords them,” concludes 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 $55million investment in the economic welfare of Bean employees. That's something we can all celebrate.”

Any employee who worked a minimum of one thousand hours in the 2003 calendar year and who was actively employed through December, 2003 will receive the performance bonus. Over nine thousand L.L.Bean employees will receive payouts totaling $36million on Friday, March 26.

Other Key Metrics:

  • Fiscal 2003 had largest year over year sales increase since 1995 (11%).
  • The company's previous high water mark for annual net sales was $1.14 billion in 2001.
  • 2003 Bonus payout of $36 million is the largest since 1994 when the company disbursed $26 million on annual net sales of $976million.
  • L.L.Bean had best December in company history (+8% over 2002, the prior record)
  • All L.L.Bean regional stores post new single day sales records, including a single day sales record of $1.1 million at Freeport flagship store
  • llbean.com tops 50,000 orders in a day four times during December holiday peak
  • L.L.Bean ships 175,000 packages on its single busiest day during holiday sales period
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