Foothill Ranch-based Oakley Inc. reported a mixed quarter on Thursday, with sales rising sharply but operating profit falling from a year earlier.
Oakley recorded a 19% rise in sales to $204 million in the period, versus a year earlier.
The sunglasses maker said the gain was a result of the launch of its first line of women’s glasses, the acquisitions of Oliver Peoples Inc. and The Optical Shop of Aspen, and growth at its other stores.
But Oakley’s operating profit fell 20% to $28 million in the quarter. The company blamed higher costs related to its acquisitions, stock options compensation and the consolidation of some European warehouses for the decline.
Based on sales growth in the second quarter, Oakley upped its revenue growth expectations for 2006 to 13%, versus a prior forecast of a 10% increase.
Oakley expects its profit to be about $47 million in the quarter, in line with its previous expectations.
“(W)e intend to continue making investments during the second half of 2006 concentrating on the continued acceleration of our product development, retail expansion, re-branding Sunglass Icon and brand marketing including the re-launch of the oakley.com Web site,” said Scott Olivet, Oakley’s chief executive, in a statement.
Oakely bought Los Angeles-based Oliver Peoples and Aliso Viejo-based Optical Shop of Aspen, two upscale glasses sellers, earlier this year.
