An Exit Interview With Outgoing L.L. Bean CEO Stephen Smith

L.L. Bean CEO Stephen Smith is leaving the company in the spring.. (Courtesy L.L. Bean)

L.L. Bean, that privately held, iconically Maine retailer, has been around for 113 years, and yet Stephen Smith was the first outsider to run the company when he was named CEO in 2016. Recently, Smith, 55, who previously worked at Walmart, announced he would be stepping down next spring, capping off a 10-year run. I sent Smith some questions this week regarding “Beans,” his tenure, and the company’s future. Here’s what he had to say.

Barron’s: Why are you leaving at this juncture?

Stephen Smith: By the time I step down in 2026, I’ll have been in the role for more than a decade—which, in CEO terms, is a meaningful stretch. It has been an incredible run, and I feel grateful for the time I’ve had to help shape this brand’s story. But 10 years is also a natural inflection point—a clean milestone that allows for reflection and renewal.

We’re also at the front end of something new. We’ve just launched our next five-year strategy. And while the foundation is in place, it’s still in its early, adolescent form. That’s an ideal moment for a new leader to step in—not when the strategy is fully baked, but while there’s still room to shape it, accelerate it, and see it through.

The company is in a strong place: We have a clear vision and momentum across the business. That stability gives me the confidence to step aside and create space for the next chapter—both for L.L. Bean and for myself.

What are you most proud of? What do you feel like you accomplished?

There’s a lot I’m proud of, but if I had to sum it up: We honored the legacy while making the business stronger.

We grew revenue, expanded into wholesale, and deepened our digital capabilities—all while staying true to the values L.L. himself set down in 1912. We made purpose a central part of our strategy. We helped more people rediscover the outdoors, especially during the pandemic. And we made bold moves—like the “Be an Outsider” campaign —that reminded people just how relevant this brand still is.

But more than anything, I’m proud of how we unlocked the potential of our people. That included encouraging new thinking and trusting people to try things we hadn’t done before. We built a culture of collaboration and possibility—where ideas could come from anywhere and often did. Their resilience, creativity, and deep love for the brand are what made all of it possible. That’s the legacy I’m most honored to leave.

How important is technology for L.L. Bean? And tech-proficient workers? Is artificial intelligence a part of the equation?

Technology has been a key part of our evolution over the past decade—from improving inventory accuracy to enhancing the customer experience across channels. We’ve worked hard to modernize our systems and continue to focus on building a tech-confident workforce across functions.

I’m also personally passionate about supporting the next generation of talent in this space. That’s why I’ve been involved with the Roux Institute at Northeastern University, helping to ensure that Maine continues to develop the kind of data, engineering, and AI talent that companies like ours—and others across the region—need to thrive.

AI is absolutely part of the equation, though we approach it with care. For us, it’s not about chasing shiny objects. It’s about using technology to better serve the customer, empower employees, and make smarter, more human decisions at scale.

How is the labor situation in Maine, and for L.L. Bean generally?

Like many employers, we’ve had to navigate a tight labor market, especially for seasonal and warehouse roles. That said, our retention and loyalty remain high. I think that’s because people see L.L. Bean as more than a job—it’s a place with values, with purpose, and with a long track record of treating employees well.

We continue to invest in training and development. And importantly, we’re still designing, testing, and building right here in Maine—something that continues to attract top talent.

What are the best-performing, fastest-growing parts of the company: apparel, home goods, camping/biking/boating, or hunting/fishing?

We’ve seen strong performance across several areas, but a few standouts come to mind. Our Boat and Tote business continues to exceed expectations—it has been rediscovered by a new generation, and we’ve leaned into that momentum with fresh colors, collaborations, and personalization. What started as a utilitarian ice bag has become a cultural icon, bringing in more new buyers than any other category for the past four years—and that has been exciting to watch.

We’ve also seen notable growth in men’s apparel, particularly in updated essentials—especially our comfort stretch performance polos, cloud gauze shirts, No Fly Zone explorer shirts, and our VentureStretch chinos—all products that blend performance and style. Fishing apparel has also been quite strong for us this spring and summer.

How is L.L. Bean poised for stability and growth?

We’re in a healthy place, with stable family ownership and a stable board. We also have no debt and steady performance across categories and channels. Our direct business is robust.

One advantage we have is that we aren’t overstored. Unlike many retailers, we haven’t saturated the market, which leaves us with significant opportunity for retail growth. We have aggressive plans under way to expand our physical presence in strategic markets, with a focus on creating service-oriented brand experiences.

More broadly, we’ve modernized the business through technology, storytelling, and product evolution—without losing sight of who we are. That blend of discipline and possibility is what gives L.L. Bean its staying power. We’re not chasing trends—we’re building something built to last.

What are the biggest concerns and biggest opportunities for the company?

One challenge is staying top of mind in an increasingly crowded marketplace. There’s more noise than ever, and consumer habits continue to shift. But we see that as opportunity, too—to be more intentional in how we show up, and to deepen the emotional connection with the next generation of customers.

We’re not trying to be trendy. We’re trying to be timeless—and that takes discipline and creativity. Our opportunity lies in bringing more people into the brand through great product, meaningful stories, and standout service.

How has the competitive set changed — from REI and Patagonia to BassPro, Cabela’s, and Stio?

The competitive landscape has expanded in meaningful ways. We continue to share space with longtime outdoor brands like REI, Patagonia, and the North Face, and we’ve seen other players like Stio and Huckberry capture attention as well. We’re also competing with lifestyle brands like Levi’s, Lululemon, and Gap—brands that speak to comfort, quality, and cultural relevance in everyday wear.

What sets L.L. Bean apart is that we can straddle both worlds. We’re rooted in the outdoors, but we’ve also earned a place in people’s daily lives—in their closets, homes, and routines. We don’t have to reinvent ourselves to meet this moment—we just have to keep being L.L. Bean, and keep meeting people where they are.

How important is L.L. Bean to Maine, and vice versa?

The bond between L.L. Bean and Maine runs deep. This state shaped the brand, and the brand, in turn, has become one of Maine’s most enduring symbols. We’ve grown up here together—through good seasons and tough ones—and that shared history shows up in everything we do. We design and develop every single one of our products here in Freeport. We bring millions of visitors to the state every year. And we give back, through outdoor access initiatives and community partnerships.

I’ve lived all over the world, but Maine has a character that’s rare—tough and humble, grounded and creative. That’s L.L. Bean in a nutshell.

What will you miss the most, and will you still come to Maine?

I’m staying in Maine. My family and I have made Maine our home, and I feel incredibly fortunate to be rooted in a place with so much natural beauty, creativity, and character.

What I’ll miss most is the people. The energy inside this company is something special—whether it’s a product designer developing next season’s outerwear or a Bootmobile driver greeting a line of kids on a school visit. There’s a deep pride in the work here, and it shows up in ways big and small every day. It has been the privilege of a lifetime to help lead L.L. Bean.

And I’m hopeful that I can be a seasonal employee in our warehouse!

Write to Andy Serwer at andy.serwer@barrons.com