OAKLEY SEES SALES SHORTFALL
FOOTHILL RANCH, Calif. — Oakley Inc. said sales will be lower than expected in the third quarter ending Sept. 30, and earnings will fall below analysts’ estimates of 16 cents a share.
The stock slumped 1 1/8 to 11 5/8, or 8.8 percent, Tuesday and was the seventh-largest percentage loser on the New York Stock Exchange.
Oakley said that it anticipates third-quarter sales to be similar to second-quarter sales of $55.2 million. The shortfall is primarily attributed to lower-than-expected production of its new Fives line and its two recently introduced polarized products; shipping disruptions related to the UPS strike; lower-than-expected sales of the M Frame line in the domestic sports specialty channel, and weakness in some international markets.
“Although we are seeing a positive response from retailers for each of our new 1997 product releases, our production capacities have not yet caught up with the increasing demand,” Link Newcomb, chief executive officer, said in a statement.
Oakley will report third-quarter results on Oct. 22. A year ago, its earnings surged 53 percent to $15.7 million, or 22 cents a share. Sales jumped 43 percent to $67.8 million.