Revising its sales and profit projections for the balance of this year because of a weak retail environment, Oakley says softer than expected sunglass sales will lead to sales increases of only 10-12 percent in the 3rd quarter and 20-22 percent in the 4th quarter, versus the corresponding 2001 periods. Because of their high margins, this will have a major impact on net earnings. The new guidance calls for net income of 16 cents per diluted share on sales of $125-128 million for the 3rd quarter and 10 cents a share on $108-110 million in Q4.
Meanwhile, Oakley points out that it has been ranked by Forbes magazine as #17 on a list of the ?top luxury brands? in the USA. Led by Absolut, Harley-Davidson and Tiffany, Forbes' ranking is based on degree of control over the distribution, effectiveness of marketing, media visibility and the influence of the brand in purchase decisions. A fashion brand, Chanel, comes in 6th place, after Ritz-Carlton and BMW. It's followed by Rolex, Gucci and Mercedes.