OAKLEY PROFITS SURGE 75%
NEW YORK — Oakley Inc. on Wednesday posted a 75 percent jump in net income for its fourth quarter, with a corresponding 83 percent jump for the year.
For the quarter ended Dec. 31, income rose to $9.1 million, or 14 cents a diluted share, from $5.7 million, or 8 cents, in the comparable 1999 quarter. Sales were up 41 percent to $93.3 million from $66.3 million. Results in 1999 include a $12.6 million charge in connection with the company’s restructuring of its footwear operations, which is included in the company’s cost of sales.
Link Newcomb, chief operating officer, said, “We have successfully established four profitable new product categories, each of which offers substantial upside potential based on current market size.” He explained that the company has “built strong teams and infrastructure” that will allow Oakley to bring a wide and deep line of new products to market in 2001.
In the quarter, the new product category initiatives accounted for more than 20 percent of total sales. Oakley’s prescription eyewear business nearly doubled in 2000, with sales now at $2.6 million. The company is planning a prescription-only line slated for release in March.
Oakley noted that its order backlog as of Dec. 31 was $26.8 million compared with $6.6 million at the same time last year. The increase, the company noted, is principally attributable to strong future orders from retailers for the company’s spring footwear and apparel lines.
For the year, the company posted $51.1 million in income, or 73 cents a diluted share, versus $28 million, or 40 cents, in 1999. Sales were up 41 percent to $363.5 million from $257.9 million in 1999.