Oakley has reported net income of $41,550,000 for the 2004 financial year, up 9 percent. Revenues increased by 10.9 percent to $585.47 million. Domestic sales rose by 58 percent to $62.1 million, including a 15 percent increase in sales to Sunglass Hut and a 66 percent increase in sales to other wholesale accounts. Retail sales rose by 34 percent to $21.1 million, while international sales rose by 3 percent to $69.8 million, including a 6 percent boost from currency.
Sales of the new Thump totaled $19.8 million, which accounted for about one-third of the company's sales in the new product categories, and the management is confident that Oakley's new involvement in electronics, including its new deal with Motorola for wireless telephony, will help it to achieve sales growth of 10-15 percent this year. Order backlogs at year-end were up by 7 percent to $55.3 million, with gains in watches and apparel offsetting declines in eyewear and footwear.
Sales of goggles grew by 8.3 percent to $39.2 million last year. Sales of sunglasses inched up by 1.3 percent to $314.5 million, due in large part to favorable currency rates, higher price points for new styles and a higher contribution from the company's own stores. Unit sales of sunglasses were down for the year to 4,117,563 pairs from 4,199,916 in 2003.
For the 4th quarter ended Dec. 31, the company tripled its net income to $9,991,000, with sales up 24 percent to $152.96 million. Sunglass sales were up 5.9 percent in units and 9.7 percent in dollars, reaching $69.5 million. The Thump and high deliveries of combat eyewear to the US Army helped to lift wholesale revenues in the USA by 57.6 percent, including a 14.8 percent increase in sales to Sunglass Hut. Prescription eyewear sales declined due to higher returns of discontinued styles. On the other hand, sales outside the USA rose by only 2.9 percent to $69.8 million, with the weak dollar providing a benefit of 5.8 percentage points. Sales fell in the South Pacific, Europe and Mexico.
Apparel and accessories grew by 14 percent in the quarter. Oakley's apparel lines, which are doing particularly well in Europe and represented overall sales of $95 million last year, have been very sports-oriented until now. In a significant move that highlights Oakley's attempt to raise the fashion content of its brand, the company staged its first fashion show during the Olympus Fashion Week in New York last Feb. 5, marking the launch of its first full-fledged ready-to-wear collection, which is very sexy, and featuring one of its icons, Ana Beatriz Barros.
Meanwhile, Oakley has announced the resignation of its chief financial officer, Tom George, who has gone to work for a private emerging company in San Diego. He will be temporarily replaced by Oakley's chief operating officer, Link Newcomb.