5 March 1998: Oakley Inc. has reported that quarterly sales rose for the first time in a year, indicating that the sunglasses manufacturer has overcome problems plaguing both its industry and Sunglass…
5 March 1998: Oakley Inc. has reported that quarterly sales rose for the first time in a year, indicating that the sunglasses manufacturer has overcome problems plaguing both its industry and Sunglass Hut International, its largest customer. The company said that fourth-quarter sales rose 13% to US$ 45 million, thanks to a 56% gain in sales to its largest customer, optical retailer Sunglass Hut International. Reports say a build-up of inventory at the US-based chain in 1996 caused Oakley to cut off its fourth-quarter shipments to Sunglass Hut that year. That move, plus an oversupply of sunglasses industrywide, supposedly resulted in a series of quarterly declines in profits and sales, a sinking stock price and three shareholder lawsuits against Oakley. Despite the sales gain for the recent quarter, Oakley“s profits slipped, largely because of a seasonal increase in sales of lower-margin goods such as goggles and apparel. Net income totalled US$ 3.4 million, or US$ 0.05 a share, down from US$ 3.6 million, or US$ 0.05 a share on a higher number of shares outstanding, a year earlier. Oakley shares recently rose 3%, or 31 cents a share, to US$ 10.38 on the New York Stock Exchange. More than 398,000 shares traded, nearly double the three-month daily average. For the year, Oakley“s profits fell 57% to US$ 19.6 million, or US$ 0.28 a share, from US$ 45.9 million, or US$ 0.64 a share in 1996. Sales fell 11% to US$ 193.9 million from US$ 218.5 million. Meanwhile, Oakley“s products received huge exposure on television at the winter Olympics in Nagano, Japan. More than 100 athletes from 19 countries wore Oakley glasses, goggles and face shields during skiing, speed skating, snowboarding and hockey competition.