OAKLEY NET TO EXCEED ESTIMATE
NEW YORK — Sunglass manufacturer Oakley Inc. said it expects to beat Wall Street’s fourth-quarter earnings estimates of 11 cents a diluted share by at least a penny.
Year-ago earnings for the company amounted to $5.7 million, or 8 cents a diluted share, excluding $8.2 million in one-time charges for restructuring.
Additionally, the company said its fourth-quarter sales from new product initiatives — including footwear, apparel, watches and prescription eyewear — leaped 149.4 percent, to $20.2 million, compared to year-ago sales of $8.1 million.
In the fourth quarter of last year, sales from the four new product categories accounted for 8.2 percent of total sales, which reached $66.3 million.
“Throughout 2000, we began to see the benefits of more than four years of effort behind our product diversification strategy, including a profitable second half in footwear,” said the company’s chief operating officer, Link Newcomb, in a statement.
For the year ended Dec. 31, the Foothill Ranch, Calif.-based accessories firm expects sales from its new product initiatives to increase 86 percent, to $56.1 million from $30.2 million in 1999.
A previous Oakley quarterly statement noted that the bulk of new sunglass styles are introduced in the second and third quarters with volume in the fourth quarter of 2000 and first quarter of 2001 more dependent on reorders of existing styles.
According to the statement: “Overall sales increases are therefore expected to become more dependent on sales from the company’s new footwear, apparel, watch and prescription eyewear categories.”
For the first nine months of 2000, Oakley’s net income jumped 85.2 percent, to $41.3 million, or 60 cents, a diluted share, from $22.3 million, or 32 cents, a year ago. Revenues were up 41 percent, to $270.1 million from $191.6 million in the first nine months of 1999.