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Oakley Says Profit Won't Meet Expectations

September 10, 1997|Patrice Apodaca

Oakley Inc. said its third-quarter earnings will fall "substantially below" estimates. The Foothill Ranch-based eye wear maker said its profit for the three months ending Sept. 30 will fall well short of the 16 cents a share that analysts had projected, while its net sales will probably reach about $55 million. In the year-earlier quarter, Oakley earned 22 cents a share on net sales of $67.8 million. Oakley blamed the projected earnings shortfall on a variety of problems, including lower-than-expected production of its new Fives line of small-framed sunglasses and of two recently introduced polarized glasses. It also cited the recent United Parcel Service of America strike, which the company said disrupted shipments, and lower-than-expected sales of its M Frame line of sports sunglasses in the domestic market. The announcement came one day after a management shake-up that saw longtime Chief Executive Mike Parnell replaced by former Chief Operating Officer Link Newcomb, although Parnell is remaining with Oakley as vice chairman. The company's stock sank $1.13 a share to close at $11.63 in New York Stock Exchange trading.

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