Oakley Posts Gains as Shares Drop

Oakley Inc. posted strong gains in net income and sales for the third quarter, but the stock slumped 14% Thursday in trading on the New York Stock Exchange.

The Irvine designer and manufacturer of sunglasses and goggles said net income rose 54% to $15.7 million, or 22 cents a share, from $10.2 million, or 15 cents a share, for the comparable period last year. Sales increased 43% to $67.8 million from $47.5 million. For the nine months, net income advanced 39% to $42.4 million, or 59 cents a share, from $30.4 million, or 46 cents a share, for the corresponding 1995 period. Sales were up 38% to $179.3 million from $129.8 million.

Even though the company’s quarterly earnings surpassed the 20-cent prediction held by several analysts, Oakley’s stock dropped $2.875 to close at $17.125. The stock registered a similar drop a week ago after Sunglass Hut, a major retailer of sunglasses, said that its sales in the summer had been lower than expected.