Rainy Spring Weather Soaks Oakley's Results - TheStreet

Rainy Spring Weather Soaks Oakley's Results

Also, an analyst cuts the stock to sell. The shares are down 9%.
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Oakley

(OO)

posted a decrease in second-quarter profits and missed analysts' consensus forecast as the rainy weather hurt sales of sunglasses.

The company earned $18.2 million, or 27 cents a share, compared with $22.3 million, or 32 cents a share, in the second quarter last year. Analysts polled by Thomson First Call were expecting 29 cents a share.

Sales slipped to $143.8 million from $145.1 million last year. Sales from Oakley's retail stores rose 54.8% to $13.7 million. Sunglasses sales decreased 7.6% to $105.4 million.

"Our second-quarter sales reflect the tepid retail environment that prevailed across the U.S. as record rainfall and unseasonably cool weather muted what is usually the strongest season for consumer purchases of sunglasses and other summer season products," said Link Newcomb, the company's chief operating officer.

The company's order backlog at June 30 was $66.5 million, up 8.3% from $61.4 million last year. The Foothill Ranch, Calif., company confirmed that it still expects to earn 55 cents to 60 cents a share this year on revenue growth of 10%. Previously, the company had expected sales to increase 15%. Analysts are forecasting earnings of 59 cents a share, on average.

Separately, Oakley was downgraded by WR Hambrecht to sell from hold Wednesday following the company's disappointing quarter.

Shares of Oakley were recently falling 9.2% to $11 on the news.