Oakley headquarters in Foothill Ranch.
Oakley released its fiscal 2007 third quarter earnings Thursday that again validated CEO Scott Olivet's turnaround strategy for company. Here are some highlights from the conference call:
- The company has cleared nearly every anti-trust hurdle and has scheduled a shareholder vote for Nov. 7 for its merger with former arch rival Luxottica Group of Italy.
- Net sales rose 25 percent to $264 million.
- Net income increased 37 percent to $24 million.
- Optic sales drove growth, increasing 29 percent to $192 million. Sunglasses and prescription eyewear lead the way.
- Apparel, footwear and accessory sales increased 13 percent to $52 million, led by sales in Brazil and Australia. U.S. wholesale sales were down in this category.
- Oakley's focus on the Asian Pacific region paid off. Optics and apparel, footwear and accessory sales generated double-digit growth. Optics sales were especially strong in Japan.
- Oliver Peoples is struggling. The upscale sunglass line has a backlog of key eyewear styles, limiting sales growth short term.
- Oakley will end the year with 297 company operated retail stores. U.S. retail sales in the third quarter rose 35 percent to $63 million.
- CEO Scott Olivet, who joined Oakley from Nike in late 2005, is understandably pleased.
- "We are also optimistic about the sustainability of performance, because we are delivering top-line and bottom-line growth, while at the same time building for our future," he said. "And very importantly, we are delivering the results while building brand equity...All our initiatives have been designed and executed to connect more deeply with our consumers and let them in on what we believe is one of the best kept product and brand secrets...The Oakley brand is back."