One of the most interesting items from the financial report for the 3rd quarter ended Sept. 30 is the fact that sales outside the USA have broken through the $50 million mark. At $52,076,000, they almost caught up with Oakley's US turnover of $54,968,000 in the quarter, and they will probably overtake it soon, judging from the current sales momentum. US sales rose by 47 percent in the quarter, as compared to one year ago, but non-US sales grew by 55 percent in dollars and by 68 percent in local currencies, with strength in all the key markets and a tripling in South Pacific sales as a result of the new Australian subsidiary and the Sydney Olympics.
Oakley reports strong sales for a wide variety of sunglass products. While the order backlog is more than double the level of one year ago, the company warns again investors that its the trend may not be quite sustained in 2001, where lower growth for sunglasses will likely be offset by the growing demand for Oakley branded footwear, apparel and performance watches. Still, Oakley is planning to raise capacities to meet demand for X Metal frames, whose sales more than tripled in the 3rd quarter.
The company reports outstanding sales of its new updated Wire styles and the Twenty and Eye Jacket 2.0 lines, all launched this year. Snow goggles enjoyed major growth. So did its prescription eyewear, boding well for the introduction of new exclusive styles in this category early next year. Total sunglass sales reached 1,323,861 pairs in the quarter and 3,851,966 in the first 9-month period, as compared to 989,942 and 3,101,657 pairs, respectively.
In total, the group's revenues rose by 51 percent in the quarter to $107 million. Net income rose by 69 percent to $17.4 million. The gross margin declined from 62.3 to 60.8 percent, largely because of the strength of the dollar in Europe and Australia, yet the operating margin improved from 22.9 to 25.8 percent thanks to lower operating expenses.