Shares of sunglasses and apparel manufacturer, Oakley Inc. (NYSE: OO) jumped nearly 12 percent by Friday afternoon to $25.09 after word the company tripled its 2007 first-quarter profit, reflecting a 31.3 percent climb in sales.
Today the sporting accessory retailer announced its first-quarter net sales for the period ended March 31, 2007 were $199.2 million, up from $151.7 million in the same period last year.
First quarter net income was $5.7 million, or 8 cents per diluted share, compared to last year’s first-quarter net income of $1.9 million, or 3 cents per diluted share.
Oakley also raised its 2007 earnings forecast range to between 95 and 98 cents per share from its previous estimate of 94 to 97 cents per share. The change partially reflects an income tax refund that decreased the company’s provision for income taxes by about $850,000 or 1 cent per share.
“Our strong first quarter results are a reflection of Oakley’s renewed focus on optics, solid growth and execution in our own retail, contribution from our acquisitions, and the successful implementation of process changes that allowed earlier shipment of our spring 2007 product,” said Oakley Chief Executive Officer Scott Olivet in a press release. “We set a high bar for ourselves in our target 2007 revenue and EPS growth and are pleased that we are off to a strong start.”
Oakley owns more than 540 patents, distributing sunglasses, goggles, prescription eyewear, apparel, footwear and accessories to more than 110 countries. The company is involved in the entire production process: from design to development; marketing to distribution.
“We remain focused on building solid business platforms capable of driving consistent, profitable growth. Each time we execute, it is imperative to turn the event into a sustainable process,” said Olivet. “Throughout 2007 we will continue to develop our ability to connect with consumers on our brand and product messages, develop our apparel line and improve on-time delivery performance, and drive operational excellence with a focus on improved customer service.”
