L.L. Bean cuts 300 Jobs

American apparel retailer L.L. Bean Inc. announced on Tuesday that it will cut about 300 jobs in the next two months from its year-round work force of 4,300.
The company said cuts were needed despite the solid financial year it had in 2002. Declining prices in the retail apparel sector, annual wage increases and increasing health care costs continue to put pressure on operating margins, the company said.

"This action is necessary if L.L. Bean is to remain competitive in today's retail marketplace," said Chris McCormick, L.L. Bean's president and chief executive. The company hasn't determined yet which jobs will be cut.

Company spokesman Rich Donaldson said L.L. Bean enjoyed a 5 percent increase in unit sales this fall season, which includes Christmas, but revenues remained flat. L.L. Bean estimates net sales for its 2002 fiscal year, which runs through the end of February, to come in at about $1.1 billion, down from $1.14 billion the previous year, Donaldson said.

February 6, 2003

Accounting irregularities at Cutter & Buck

US retailer of casual wear Cutter & Buck has become the latest company to admit to 'accounting irregularities'. The announcement came just days after the resignation of its chief financial officer Stephen S Lowber.

The company was prompted to launch an investigation when $5.8 million worth of errors were discovered in its fiscal 2000 and 2001 statements. A committee set up to probe the inaccuracies also believes that some members of the company's former management may have received increased incentive compensation as a result of the overstated 2000 financial results.

The company says the accounting revelations won't change its net worth or its cumulative sales totals over the past three years - and has promised a full investigation. But although nowhere near the multibillion-dollar accounting fiascos at Enron and WorldCom, it does mean that Cutter & Buck joins a growing list of companies that have misled investors.

The firm, which expects to report a net loss in its first quarter, will also be burdened by the costs of the current investigation.
www.cutterbuck.com

08-15-02