Oakley’s Net Income Tumbles 80% in Quarter

Oakley Inc. posted an 80% drop in first-quarter profit Thursday as strong sales of sunglasses failed to offset higher operating expenses and lower margins as the Foothill Ranch-based company scales back on apparel and footwear to focus on eyewear.

Net income fell to $1.9 million, or 3 cents a share, compared with $10 million, or 15 cents, in the year-earlier period.

Analysts, on average, had been expecting earnings per share of 2 cents, according to Reuters Estimates.

In the quarter, sales rose 7% to $151.7 million compared with $141.8 million. Results included a 12% increase in sales of optics, including the first women’s collection and sales of newly acquired Oliver Peoples glasses.

Oakley shares fell 5 cents in after-hours trade after closing at $16.81, down 2%.