L.L.Bean Inc. Reports 2007 Net Sales Results
Freeport, ME, Friday, March 7, 2008 – L.L.Bean announced today a positive close to its 2007 fiscal year, bucking retail industry trends that showed disappointing results for many retailers. On the basis of the business performance for 2007, 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 5.5% increase in net sales over the prior year,” said Chris McCormick, L.L.Bean’s President and CEO. “It was a solid team effort deserving of recognition for our employees for their outstanding performance, in a year that we faced stiff headwinds as a result of a weakening economy.”
For the 2007 fiscal year ending February 24, 2008, L.L.Bean reported annual net sales of
$1.62 billion, a 5.5% increase over 2006. The company also announced that its board of directors approved a cash award of 5% of annual pay to eligible employees, a payout of approximately $18.5 million. An additional $10 million will be allocated to the pension plan, keeping the plan fully funded.
“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 very good spring season, somewhat soft September and October with unseasonably warm weather, and a very strong December which came in 20% over 2006 and enabled us to make up a lot of lost ground. Our employees really pulled together to manage a high volume peak, while delivering excellent customer service.”