L.L. Bean sales down in 2009
By DAVID SHARP, Associated Press Writer
FREEPORT — Sales dipped for L.L. Bean for the second consecutive year in 2009 but the outdoors clothing retailer managed to beat its own projections, the company said Friday. The company also reported that online sales outpaced catalog orders for the entire year for the first time.
Among company goals is attracting younger customers to the brand.
Press Herald file photo
President and Chief Executive Officer Chris McCormick told employees that revenue for the fiscal year that ended last month was about $1.4 billion, down from $1.5 billion the year before. The 6.6 percent drop capped a challenging year for the company, which has seen revenue decline only four times since 1960.
Still, strong sales in January and February helped the company beat its profitability goals, and 5,000 employees are eligible for a 3 percent cash bonus, he said.
“While we face many challenges ahead as the economy continues its slow recovery, we are optimistic about the future,” McCormick told workers in a memo.
L.L. Bean wasn’t alone in struggling in 2009, which saw the biggest yearly decline in overall retail sales on record in the U.S.; but there are signs that things are turning around in the new year. As for L.L. Bean, the company has seen surprisingly strong numbers in the first two months of the year, thanks in part to strong sales of winter clothing after back-to-back snowstorms on the East Coast.
L.L. Bean shopper Susi Homer said people are feeling a bit better about the economy but they’re still being cautious with their spending. In a typical year, the bed-and-breakfast owner budgets $700 for her business wardrobe, but last year she spent nothing at all. This year, she’s budgeted $300.
“It’s not that we’re not spending. We’re just not spending as much,” Homer, of Southwest Harbor, said Friday as she left L.L. Bean’s store with her purchases.
L.L. Bean saw a 7.8 percent drop in sales in 2008 as the economy stumbled, and it began 2009 by planning conservatively with inventory, cutting expenses and avoiding deep discounts, spokeswoman Carolyn Beem said. The company also reduced its work force by offering early retirement packages and laying off 100 workers.
McCormick said 2010 will be a rebuilding year.
The company will invest in building its online presence, expanding the number of stores in China from 30 to 80 and attracting younger customers through its Signature brand, which launches on Monday, he said.
“The prolonged recession has altered the retail industry and consumer buying habits, most likely for the long term. We need to adapt to strengthen our business model and enhance our ability to gain market share,” he said.
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15 COMMENTS
IMPistov said...
Keep bending over for the Chinese, soon enough they will own you!
March 12, 2010 at 3:06 PM Report abuse
common_cents said...
Go dumpster diving behind the warehouses; and you'll find out where all that stuff BEANs' sells comes from.
March 12, 2010 at 3:36 PM Report abuse
CCC-Port said...
No longer styling clothes for the more mature woman (such as no more buttons on fleece jackets--only zippers on clingy, thin fleece). LLBean is going after the 20 and 30 somethings with their new clothing fit and style, like those age groups are really going to shop a lot at LLBean. They lost me as a customer, to the tune of $1,000+ per year. Not even going to buy the grandkids anything from LLBean, either.
March 12, 2010 at 4:14 PM Report abuse
MAC said...
What other large company in Maineis giving bonuses this year?
March 12, 2010 at 4:25 PM Report abuse
ProConserv said...
Cabelas...a much better store with better merchandise!
March 12, 2010 at 5:28 PM Report abuse
AXeL said...
Awful sorry to report that L.L.Bean has not gone bankrupt and sent their thousands of employees packing to the unemployment line. I know that would make many people happy. Strangely, many Maine people overtly hope and pray for businesses and employers to fail. I don't get it. L.L.Bean is a fabulous employer, unless you ask someone who got fired for being a shiftless, lazy, thieving so-and-so, but that is the mind-set in Maine as we race toward a welfare state.
March 12, 2010 at 6:22 PM Report abuse
badjuju said...
One time Beans was a Maine store with Maine made products sold by Maine people. NOT ANYMORE.
March 12, 2010 at 6:32 PM Report abuse
Jonathan said...
Compare this to public companies who do stupid things such as increase the dividend while telling employees there's just no money for raises this year.
March 12, 2010 at 10:01 PM Report abuse
Baiges said...
Opening stores in China will result in savings on shipping. If you compare the clothing with Walmart you can see how close the quality is. Did you know that there are companies in Lawrence Massachusetts that still makes dress shirts and suits for top name brands? The Harvard training the CEO received on international trade paid off for Oregon. You can now purchase your Christmas reef offered by a Maine company produced in Oregon. When you bargain like Walmart you can't be sentimental about where a product originates. This has been in the plan for this country for over thirty years folks. Just continue to ignore what is happening around you and continue to not bother to vote just so you can sit on your butt and do whatever you do.
March 12, 2010 at 10:52 PM Report abuse
micilio said...
The last two purchases I made at LL.Bean were both Maine made. I dont know what peoples gripe with Bean is? And Cabelas Proconserve? everything I have ever bought there is complete garbage, unless your looking for a pair of snake proof boots, you must be a southerner. LL.Beans largest problem is the ability to keep top sellers in stock. I have had my upsets with the store over the years,but overall, when I call them with a problem,someone in Maine answers the phone and knows the product Im talking about. Try that with Cabella's and you get Luke Duke on the phone!! And CCC-port, oooooh! A grand, HA! I have double that in one shot gun purchase!
March 13, 2010 at 6:19 AM Report abuse
Oakey said...
Forget about the Plus sized ladies they don't exist at LLBean, the only thing I can wear is the shoes!
March 13, 2010 at 9:22 AM Report abuse
bubbagump said...
LL Bean keeps all its stock options in the family and will never go public with them. Stay nepotistic and thats where your business will go. Like the blogger said. Keep bending over for the the chinese and going after the 20 somethings. You lost my biz years ago. The quality has gone downhill and Cabelas is a much better option.
March 13, 2010 at 10:24 AM Report abuse
Tonto said...
Not a big surprise. I doubt that there were very many companies in Maine or elsewhere in the U.S whose sales were up in 09. Except maybe Walmart, with all their Chinese crap and crappy food. Doesn't take a rocket scientist to figure this out. The economy sucks.
March 13, 2010 at 5:20 PM Report abuse
Tonto said...
And to Bubbagump, where do you think Cabela's get's their stuff. Most of it, at least clothing, is not from the U.S.
March 13, 2010 at 5:24 PM Report abuse
bubbagump said...
Tonto said.. Thats right but Cabelas does't try to convey the same message that LL Bean does. Made in Maine and made in America. Yada Yada. Folks are seeing right through it now. I bought a leather coat from from Beans. Made right in Turkey. So thats my point. Dont pitch sales that you cannot back up. Not putting down Beans by the way, in reality a lot of what they sell is good stuff with an excellent return policy. They are slipping. They keep very little in stock.
March 13, 2010 at 8:25 PM Report abuse