L.L. Bean reports strong growth

FREEPORT – Outdoor goods retailer L.L. Bean Inc. on Friday reported record annual net sales of $1.47 billion for the fiscal year ending Feb. 26, a 4 percent increase over 2004’s performance.

The company also said its board unanimously approved cash bonuses of 8 percent of annual pay to 4,700 eligible employees.

Company Chairman Leon Gorman said that although 2005 was challenging for all retailers, L.L. Bean posted very solid results.

“We have a solid growth strategy in place, and once again we are pleased to be in the position of rewarding Bean people for their achievements,” Gorman said.

Major world events during the year such as Hurricane Katrina had impacts on energy costs and consumer confidence, creating uncertainty for all retailers, said L.L. Bean President Chris McCormick. In response, the company implemented marketing contingencies that included an unconditional free shipping promotion in November and December.

“While very risky and rather costly, it turned out to be a risk worth taking,” McCormick said. Other changes implemented by the company included opening a new contact center in Bangor.

For the first time, the company saw e-commerce emerge as its dominant sales channel in December, while it set numerous records in operations and added a record number of new customers, McCormick said. During fiscal 2005, the company’s e-commerce grew 28 percent.