Oakley posts record preliminary results for 2005

Oakley yesterday reported preliminary and unaudited results for the three and twelve months ended December 31, 2005. These results are preliminary pending the completion of the annual audit and the conclusion of the company's evaluation of its accounting for foreign currency hedging activities under SFAS 133.

On this preliminary basis, the company generated record fourth quarter net sales of $162.4 million for the three-month period ended December 31, 2005, up 6.2 percent from $153.0 million in the same period the previous year. Sunglass sales increased 10.2 percent over Q4 2004 to a fourth quarter record $76.7 million. U.S. net sales through Oakley-owned retail locations grew 40.2 percent over Q4 2004 to $29.6 million. Net income totaled $9.2 million, or $0.13 per diluted share, compared to $10.0 million, or $0.15 per diluted share, in the fourth quarter of 2004, which included a significant contribution from the company's electronics product launch and benefited from a lower tax rate.

For the full year, Oakley achieved record net sales of $648.1 million, up 10.7 percent from $585.5 million in the prior year. Net income grew 24.8 percent to a record $51.9 million, or $0.75 per diluted share, compared with $41.6 million, or $0.60 per diluted share, in 2004.