L.L. Bean reported net sales of $1.54 billion for its 2006 fiscal year ended February 27, a 4.6% increase over 2005 net sales of $1.47 billion.
L.L. Beans e-commerce sales grew almost 10% and emerged as the retailers “dominant” channel of distribution last year, but growth was noticeably off the 28% gain in the prior year. The Bean website had 73 million visitors in 2006, an increase of 13% from the prior year, and 2006 was said to be the single largest year for new customer acquisition, with 1.7 million new customers purchasing through one of three shopping channels.
The company also announced that its Board of Directors approved a cash award of 7.5% of annual pay to eligible employees, a payout that will total approximately $25.5 million. An additional $8.8 million will be allocated to the pension plan, keeping the plan fully funded.
Looking at 2006, Bean increased its regular workforce in Maine by 400 positions, bringing the total to over 4,350 and opened a new Bike, Boat & Ski Store on Main Street in Freeport and a new outlet store in Bangor, Maine.
The company also opened new stores in Massachusetts and Pennsylvania, both built to U.S. Green Building Council's LEED standards, and added four additional stores in Japan, for a total of 15 stores there.
On the philanthropic front, L.L. Bean contributed $2.5 million toward conservation, recreation, health & human services, education and the arts.
L.L. Bean is celebrating its 95th anniversary this year and plans to invest over $90 million in its hometown of Freeport, Maine on a number of projects including a 335,000 square foot expansion of the company's Order Fulfillment Center, the addition of a 30,000 square foot Hunt/Fish store to its Flagship store, and a retail complex and parking structure in lower Freeport Village scheduled for completion during 2008.
Additionally, Bean is on track to open three new stores in 2007, with one each in Connecticut, New York and Massachusetts, with plans for an additional five stores in 2008. They also plan to boost their presence in Canada and enter other international markets.
The 7.5 % bonus will be allocated among over 4,900 eligible Bean employees. Regular employees as well as temporary employees who worked a minimum of 1,000 hours during the 2006 calendar year and who were actively employed through December 2006 will receive the performance bonus. Bonus disbursements to employees will be made on Thursday, March 29, 2007.
