L.L.Bean trims employee bonuses after 'slight' sales decrease

LL Bean store exterior with the giant boot in front

File photo L.L.Bean, the maker of the iconic Bean Boot, is headquartered in Freeport.

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Sales in 2022 were $1.8 billion, a "slight decrease" from the previous year but still the second-highest in company history, which goes back to 1912. The company reported record-breaking sales growth in 2020 and 2021.
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L.L.Bean, the Freeport-based maker and retailer of outdoor gear and apparel perhaps best known for its Bean Boots, announced a lower employee bonus rate after sales inched downward in 2022.

The company said its board of directors approved a performance bonus of 13.5% of annual pay, composed of a 7.5% cash bonus and a 6% 401(k) contribution, for around 5,500 employees on the payroll.

That compares to a 20% performance bonuses awarded to employees the previous year, in the form of a 12% cash bonus and an 8% 401(K) contribution.

L.L.Bean said 2022 sales were $1.8 billion, a "slight decrease" from the previous year but still the second-highest in company history, which goes back to 1912. The company reported record-breaking sales growth in 2020 and 2021.

“As we close the books on 2022, we are honored to have been the retailer of choice for so many customers who turned to L.L.Bean to outfit them for outdoor adventures,” L.L.Bean President and CEO Stephen Smith in Friday’s news release. “Our global teams continued to skillfully navigate a changing retail environment and uncertain economic climate.”

He added: "From amazing products that delivered on innovation, function and style to accurate inventory forecasting, supply chain agility, efficient fulfillment systems, engaging marketing and storytelling efforts, and industry-leading customer service — our team’s ability to ensure our customers were outfitted and cared for helped yield another strong year for our company.”

Other highlights

Performance highlights in 2022 included a new record for sales of men's and women's apparel along with double-digit sales growth in several categories.

Wicked Good Slippers continued to be the company's top-selling product, with eight pairs sold per minute during peak holiday season. Travel, up 23%, was the fastest-growing category, while cozy apparel such as quilted sweatshirts and wearable throws saw triple-digit growth at 112% and 252%, respectively.

In terms of charitable giving, the company invested $5.5 million in outdoor programs and community partnerships and launched a two-year, $500,000 partnership with Mental Health America to fund outdoor-related community programs.