Oakley Has Higher Gains Than Expected

Oakley Inc. posted higher than expected first-quarter results Wednesday, triggering a strong stock gain for the Foothill Ranch maker or sunglasses, footwear and apparel.

Net income nearly quadrupled on record sales, driven largely by increased demand for the company’s core sunglasses lines, Oakley said Wednesday.

The stock, which has nearly doubled this year, moved up 14%, or $1.34 a share, to $10.94 on the New York Stock Exchange.

The company earned $5.5 million, or 8 cents a share, during the first three months, up from $1.4 million, or 2 cents a share, for the same period last year. Analysts were projecting earnings of 5 cents a share for the recent quarter, and the company said last month that it expected to earn at least that much.

Sales climbed nearly 30% to $63.1 million.

Eyewear, bolstered by new products and a stepped-up advertising campaign, continued to be the “‘primary driver of revenue growth,” for the quarter, the company said.

The backlog of orders stands at more than $22 million, up from nearly $6 million a year ago, and sales from Oakley’s prescription eyewear grew 184%, the company said.

Oakley said sunglasses sales probably will grow at a more moderate pace in future quarters.

The footwear division narrowed its losses during the quarter, and is expected to become profitable in the second half of the year, Oakley said.

The company also said former vice chairman Mike Parnell had resigned from the board of directors, but will remain a consultant. Parnell, who was chief executive from 1986 to 1997, resigned as vice chairman earlier this year to focus on a foundation that backs research and treatment for a rare kidney disorder that affects both of his sons.