Costs and Current Sales This move will cost an additional $10-$15 million per year and will raise some of their full-time employee salaries by as much as $600 monthly. Fortunately, their revenue last year was $1.8 billion, and their projected sales for 2009 is $2 billion. In fact, analysts believe that Hobby Lobby has even benefited from the recession, as many people choose arts and crafts projects in lieu of more expensive activities.
Background and Future Directions
Overall all, the privately-held company has over 400 stores (including Mardel and Hemispheres) and over 18,000 employees. Currently, the store has locations in 33 states. In 2009, Hobby Lobby plans to open 25 stores and will create 1000 new jobs across the country.
CEO and founder, David Green, recently said “our employees are the backbone of our company, and we believe that giving them the opportunity to share in our success is the right thing to do. This is part of our continuing efforts to reward our employees for their hard work and integrate them into the growth of our company.”
Green is a true American success story. Green is of very humble origins and never finished formal schooling past high school. He is the son of a poor minister and started the arts and craft giant with a $600 loan in 1972. Presently, he is now one of the richest men in the world, with an estimated net worth of over $1 billion.
With the interminable focus on bad financial news that plagues most media, today it is great hear of companies (such as Walmart and Hobby Lobby) that are thriving in spite of (possibly because of) the recent economic turmoil. Moreover, the fact that Hobby Lobby is sharing the wealth with the employees that helped them create the wealth is a great model that would serve many businesses well to learn from.