Oakley revises its annual guidance and launches MP3 player sunglass

Oakley has announced that the company expects to report on July 21, 2004, after the close of the market, that its second quarter net sales will be approximately $152.0 million, an increase of 5.7 percent over its second quarter net sales in 2003. As a result of these sales, the company has revised its previously announced annual earnings guidance.

The company previously announced on April 21, 2004 that it anticipated its full year earnings to be $0.65 per share on 12 percent net sales growth to approximately $585.0 million. Although second quarter earnings will be lower than what the company had expected as part of its annual guidance, the company expects a significant new sales and earnings contribution in the fourth quarter from the anticipated holiday launch of Thump, Oakley's new integrated MP3 player sunglass announced a couple of days ago.

Oakley will launch Thump in December for the 2004 holiday season under an exclusive distribution arrangement with Circuit City Stores for the consumer electronics channel. Thump will also be offered by Oakley's own O Stores, online at Oakley.com and through limited specialty retailers. Distribution is expected to expand further in 2005, including a global introduction through Oakley's international offices.

Oakley's digital music player mounts the speakers to the eyewear frame with miniature extendible booms, enhanced with pivots. They allow the wearer to adjust speaker position for optimal ear placement and to reposition the speakers away from the ears whenever necessary. By pivoting the speakers, the wearer can control the balance between environmental sound and digital music.

The electronics are fully integrated within a lightweight O Matter frame. The flip-up lenses are raked-back with 8.75 base lens curvature, maximizing peripheral view and improving protection against sun, wind and side impact. Oakley's patented XYZ Optics maintains precise clarity at all angles of vision, even at the lens periphery.

Thanks to the agreement by Circuit City Stores, Inc. to order a large number of units as part of its exclusive distribution arrangement with Oakley for the 2004 holiday season, the company has revises its full-year 2004 net sales guidance to a range of $575.0 to $585.0 million and its earnings guidance to a range of $0.60 to $0.65 per share.