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Oakley Q4 Profit Misses, Guides Up for 2007

Foothill Ranch-based sunglasses maker Oakley Inc. said Thursday its fourth-quarter profit fell from a year earlier on higher sales and forecast better-than-expected 2007 results.

Oakley’s fourth-quarter net income was $7.7 million, down 20% from a year earlier and below Wall Street’s expectations. Sales were up 20% to $187 million, boosted by acquisitions last year and ahead of what analysts expected.

For 2007, Oakley said it sees sales of $900 million to $930 million, up 18% to 22% from 2006. Profits could come in at $65 million to $67 million, the latter ahead of what analysts had expected.

Last year, Oakley made three acquisitions, buying upscale glasses sellers Oliver Peoples Inc. of Los Angeles and Aliso Viejo-based Optical Shop of Aspen, as well as Sun Valley, Idaho-based goggles maker Eye Safety Systems Inc.

Integrating the companies ate into 2006 profits, according to Oakley, though it sees the deals driving growth this year.

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