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Oakley Q2 profit drops on charges, sales surge
24 Jul '06
4 min read
Eyewear retailer Oakley Inc has announced financial results for its second quarter ended June 30, 2006.
Second quarter net sales increased 19.4 percent, to a quarterly record $203.6 million, compared with $170.5 million in the same period of 2005.
Net income for the second quarter totaled $17.9 million, or $0.26 per diluted share, including an after-tax restructuring charge of $2.1 million, or $0.03 per diluted share, related to the company's footwear business and unrealized fair value losses of approximately $1.5 million on an after-tax basis, or $0.02 per diluted share, related to the change in fair value of foreign currency derivatives recorded in accordance with SFAS 133.
Net income earned in the second quarter of 2005 totaled $24.0 million, or $0.35 per diluted share, including unrealized fair value gains on foreign currency derivatives of approximately $3.7 million, or $0.05 per diluted share.
"Our strong second quarter performance reflects early success against the strategic initiatives we articulated at the beginning of the year," said Scott Olivet, CEO of Oakley Inc. "The growth of Oakley's optics business was driven by strong demand for the company's sunglass products including the successful launch of our first women's eyewear collection, the acquisitions of Oliver Peoples and The Optical Shop of Aspen (OSA), and significant double-digit increases within each of our retail platforms."
Additionally, the company announced that it signed a new, three-year contract with Luxottica Group SpA establishing commercial terms retroactive to January 1, 2006 through December 31, 2008.
Second quarter net sales increased 19.4 percent, to a quarterly record $203.6 million, compared with $170.5 million in the same period of 2005.
Net income for the second quarter totaled $17.9 million, or $0.26 per diluted share, including an after-tax restructuring charge of $2.1 million, or $0.03 per diluted share, related to the company's footwear business and unrealized fair value losses of approximately $1.5 million on an after-tax basis, or $0.02 per diluted share, related to the change in fair value of foreign currency derivatives recorded in accordance with SFAS 133.
Net income earned in the second quarter of 2005 totaled $24.0 million, or $0.35 per diluted share, including unrealized fair value gains on foreign currency derivatives of approximately $3.7 million, or $0.05 per diluted share.
"Our strong second quarter performance reflects early success against the strategic initiatives we articulated at the beginning of the year," said Scott Olivet, CEO of Oakley Inc. "The growth of Oakley's optics business was driven by strong demand for the company's sunglass products including the successful launch of our first women's eyewear collection, the acquisitions of Oliver Peoples and The Optical Shop of Aspen (OSA), and significant double-digit increases within each of our retail platforms."
Additionally, the company announced that it signed a new, three-year contract with Luxottica Group SpA establishing commercial terms retroactive to January 1, 2006 through December 31, 2008.
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