L.L. Bean’s Sales Fall 7.8% in 2008

L.L. Bean Inc. sales fell 7.8% in 2008 to $1.5 billion, and said it expects sales to be down in 2009 as well, reported the Associated Press. The company said layoffs would be necessary this year, but President and CEO Chris McCormick said in a memo to his employees that he remains “cautiously optimistic” that the previously-announced voluntary retirement incentives will reduce the scope of layoffs in 2009.


In late January, L.L. Bean said it was freezing all wages and salaries for its 5,500 employees for the coming year due to slumping sales. The company also offered early retirement incentives to all employees who are 55 or older and have been with the company for five or more years. The program was to be offered at the end of February through early April.


The company stated Monday that no decisions will made on the number of layoffs until after the deadline for early-departure incentives expires in April.


McCormick said the company has pulled back on spending, brought in less inventory, hired fewer seasonal workers and avoided resorting to steep discounts. Despite the grim outlook, he announced a $330 recognition gift for all 5,000 full- and part-time employees to thank them for the way they responded to adversity in 2008.

L.L. Bean’s Sales Fall 7.8% in 2008

L.L. Bean Inc. sales fell 7.8% in 2008, to $1.5 billion, and expects sales to be down in 2009 as well. In a memo to employees, Chris McCormick, president and CEO, said he remains “cautiously optimistic” that previously-announced voluntary retirement incentives will reduce the scope of layoffs in 2009.

In late January, the outdoor catalog and retailer said it was freezing all wages and salaries for its 5,500 employees for the coming year due to slumping sales. The company also offered early retirement incentives to all employees who are 55 or older and have been with the company for five or more years. The program was to be offered at the end of February through early April.

On Monday, the company stated that no decision will made on the number of layoffs until after the deadline for early-departure incentives expires in April, the company said.

“We expect a further reduction in sales in 2009, and we will be forced to resize and restructure the business to match the projected decline in sales and work volumes. The 2009 budget, the most difficult in my career, strikes the appropriate balance of cost cutting while continuing to invest in our future,” McCormick told employees on Monday, according to the Associated Press.

To deal with the downturn. McCormick said the company pulled back on spending, brought in less inventory, hired fewer seasonal workers and avoided resorting to steep discounts.

Despite the grim outlook, McCormick announced a $330 recognition gift for all 5,000 full- and part-time employees to thank them for the way they responded to adversity in 2008.

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