Oakley Profit Soars 76% on New Products

Sunglass maker Oakley Inc. said its first-quarter profit jumped 76% as shoppers continued to snap up its Oakley Thump audio eyewear.

The Foothill Ranch-based company also raised its full-year earnings guidance, saying it expected profit to grow at the high end of its previously projected range of 15% to 20% and sales to grow at the upper end of the previously projected 10% to 15%.

In the three months ended March 31, Oakley earned $7.4 million, or 11 cents a share, compared with $4.2 million, or 6 cents, in the same period last year. Analysts were expecting per-share earnings of 7 cents, according to Thomson First Call.

Sales rose 10.2% to $141.8 million.

Oakley attributed the upswing, in part, to sales growth of newer products, including the international launch of the Oakley Thump, a cordless, digital music system that is incorporated in a pair of sunglasses.

Increased sales of new spring clothes and accessories, along with higher sales of combat eyewear to the U.S. military, also boosted revenue, the company said, while “solid expense control” helped profit.

The average price of a pair of sunglasses increased 2.6%, driven by the weak dollar’s effect on international sales, the strength of the company’s retail operations, “modest” price increases in the U.S. and higher sales of more expensive polarized sunglasses, Oakley said.

The company also said it bought five Optica stores through Iacon Inc., a retail subsidiary.

The earnings were released after the close of Wednesday’s stock market session, during which Oakley shares fell 40 cents to $12.55 on the New York Stock Exchange. The stock rose to $13.20 in after-hours trading.