Oakley Reports First $100 Million Quarter

For the first time in the company’s history, net sales reached 100-million dollars in a single quarter, a 39-percent increase over the previous record of 72.1-million dollars achieved in the second quarter of 1999. Net income for the second quarter totaled a record 18.5-million dollars, or 27 cents per diluted share, a 75-percent increase over the comparable period’s 10.6-million dollars, or fifteen cents per diluted share.

United States net sales totaled 60.7 million and international net sales totaled 39.3 million, increases of 38 percent and 40 percent, respectively.

“We are on fire,” says Oakley Chairman and Chief Executive Officer Jim Jannard. “These outstanding financial results reflect the strength of our entire product line, the successful execution of major new product releases, a strategic advertising campaign, and a 1,200-person worldwide Oakley team completely dedicated to purpose beyond reason.”

“We achieved two important milestones in our footwear operations during the quarter,” Jannard continued. “Not only did we satisfy our promise to shareholders by containing footwear losses to far less than 500,000 dollars in the first half of 2000, we made money in June. These results validate our business model and position us for a profitable second half.”

In addition, Oakley’s prescription eyewear business reported another strong gain with a 121 percent sales increase in the quarter.

“Oakley’s international business, with a 40 percent sales increase, achieved its ninth consecutive record quarter with continued strength coming from all key markets, including Europe, Japan, Australia, Southeast Asia, Canada and Latin America,” continued Newcomb.

Oakley’s order backlog as of June 30, 2000 was just under 42-million dollars compared to nearly 23-million dollars at the same time last year. “This increase reflects positive reactions by retailers to our fall apparel, ski goggles, and footwear line, as well as a large increase in X Metal demand which has exceeded our current production capacities.”