Oakley posts record Q1 sales; net income rises 74 percent

Oakley, Inc. today announced results of its first quarter ended March 31, 2005.

First quarter net sales increased 10.2 percent, to $141.8 million, a first quarter record, compared with $128.6 million in the first quarter of 2004. Net income for the first quarter totaled $7.4 million.

Oakley’s chief operating officer Link Newcombsaid: "Our strong first quarter results were fueled by solid sales growth in our newer categories, including the successful international launch of Thump and the release of our new spring line of apparel and accessories. The quarter also benefited from additional sales of combat eyewear to the U.S. military and solid expense control.

"Based on our strong first quarter results and the expectations for our planned introductions, we now expect full year 2005 net sales growth near the upper end of our previously issued guidance of 10 to 15 percent and earnings growth in the high end of an increased range of 15 to 20 percent over 2004."

Total first quarter U.S. net sales increased 8.8 percent to $67.0 million from $61.6 million during the same period last year. U.S. net sales, excluding the company’s retail store operations, totaled $49.0 million, compared with $47.8 million in last year’s comparable quarter. First quarter net sales at Oakley’s retail locations increased 30.5 percent to $18.0 million and included a double-digit increase in comparable-store sales. At the end of the first quarter, the company operated 37 O Store locations and 84 Iacon sunglass specialty stores.

First quarter international net sales increased 11.5 percent to $74.8 million, compared with $67.1 million in last year’s comparable period. Net sales grew in every region, fueled by the international launch of Thump.