Oakley’s operating income jumped by 243.2 percent to $9,733,000 in the 1st quarter, ended March 31, while sales climbed by 31.3 percent to $199.2 million. The gross margin grew to 54.3 percent from 53.1 percent in the year-ago period. Net income rose to $5,743,000, compared with $1,907,000. The strong results reflect a successfully renewed focus on the company’s optical products, organic growth in its retail chains and additional sales from acquisitions.
Sales outside of the USA grew by 28.5 percent to $90.7 million in the quarter, while domestic turnover increased by 33.8 percent to $108.4 million. In the Europe, Middle East and Africa (EMEA) region, optics sales increased by double digits, and there was also a “moderate” rise in turnover for apparel, footwear and accessories. All categories grew by double digits in the Americas, while in the Asia Pacific region there was double-digit growth in optics and a “significant” increase in revenues of apparel, footwear and accessories.
In total, optics sales climbed by 35.0 percent to $144.3 million, due in part to acquisitions. The combined turnover from apparel, footwear and accessories was up by 9.7 percent to $40.4 million, as higher sales of apparel and watches were offset by a modest decline for footwear. Other products, which include non-Oakley brands owned by the company sold through multi-brand Sunglass Icon and Optical Shop of Aspen (OSA) retail stores, jumped by 80.3 percent to $14.5 million.
Wholesale turnover was up by 25.4 percent to $153.5 million. Retail sales in the USA rose by 55.7 percent to $45.7 million. As of March 31, the company had 64 Oakley branded stores in USA and 18 in other countries. This compares to 46 and 9, respectively, one year ago. The company expanded the Sunglass Icon chain to 124 doors from 108 at the same time last year. One Oliver Peoples store was added, giving the banner a total of three doors, and the OSA continues to operate 20 doors. In addition, there are 13 Oakley stores, 12 Sunglass Icon doors and two Oliver Peoples locations operated by licensees. (More in EyeWear Intelligence)
