L.L.Bean reports solid growth & employee bonuses
L.L.Bean announced a positive close to its 2010 fiscal year, bucking retail industry trends that showed disappointing results for many retailers. On the basis of the business performance for 2010 the company announced its intent to pay performance bonuses to employees.
"L.L.Bean has performed very well in a challenging retail environment, ending the year with a 5.7% increase in net sales over the prior year," said Chris McCormick, L.L.Bean's President and CEO. "The initiatives we put in place and the significant investments we made in our business have paid off, even in the midst of a slow economic recovery."
For the 2010 fiscal year ending February 27, 2011, L.L.Bean reported annual net sales of $1.44 billion, a 5.7% increase over 2009. The company also announced that its Board of Directors approved a cash award of 5% of annual pay to approximately 5,000 eligible employees.
"It's a well deserved bonus," said Leon Gorman, L.L.Bean's Chairman of the Board. "On behalf of the Board of Directors I congratulate L.L.Bean employees on their outstanding performance this year. We have a great team in place and are pleased to be in the position of rewarding Bean employees for their achievements."
Chris McCormick added further, "We had a challenging spring season, but a very strong Peak holiday season, giving us great momentum heading into January and February which remained strong," he said. "Our employees really pulled together to manage the high volume, while delivering excellent customer service."
2010 L.L.Bean Year in Review
• 2010 company net sales, $1.44 billion – a 5.7% increase over 2009.
• The company highlights include:
o One new store in Victor, New York, built to U.S. Green Building Council's LEED standards
o Launch of the Signature sub-brand, a new sportswear collection for men and women
o One new store in Japan, bringing the total to 19
o 33 new stores in China, bringing the total to 62.
• The National Retail Federation / American Express annual Customer Service Survey rated L.L.Bean number 3 overall, and the top-rated multi-channel retailer in customer service
• L.L.Bean's website sales grew 29% over 2010, setting records for online orders, becoming the most dominant sales channel, and earning multiple industry awards
• Sporting equipment sales were at their highest level ever. Boating, Camping and Cycling all saw their greatest growth in 2010
• Demand for the iconic Bean Boots, manufactured in Maine, soared up 57% over last year
• Number of customers purchasing from L.L.Bean saw one of the biggest increases in company history
• Donated $1,700,000 in corporate contributions to charitable programs in 2010, including $500,000 to the Maine Community College system
• Record-breaking United Way campaign raised $1,454,000 in corporate and employee donations for the 5 Maine United Way offices
2011 and beyond
"We are committed to investing in the business and growing the brand as we see continued strengthening of the economy," said Chris McCormick. "We will have future announcements of new store openings, and significant new marketing initiatives. We're looking forward to another successful year leading into 2012, which marks the 100th anniversary of the founding of our company in 1912 in Freeport, Maine."