Oakley Says Lagging Demand Takes Shine Off 2004 Earnings

Sunglass maker Oakley Inc. on Monday cut its earnings forecast for 2004 and said it expected to report second-quarter sales below analysts’ forecasts after customer demand for its products waned.

Sales in the second quarter were about $152 million, the Foothill Ranch-based company said.

The sales estimate is about 8% less than the $164.5 million expected by analysts, according to Thomson First Call. The company had sales of $143.8 million a year earlier. Oakley plans to report second-quarter results July 21.

Production shortfalls of the company’s two most popular new sunglasses -- the Dartboard and the Why 8 -- led to fewer sales at a time when demand for other sunglass styles waned.

International demand for Oakley sunglasses fell, sales of prescription eyewear failed to meet company expectations, and online and direct sales were soft, the company said.

As a result, Oakley cut its earning forecast for the year. The company expects to earn 60 cents to 65 cents a share on revenue of $575 million to $585 million.

In April, the retailer said it would earn 65 cents a share on sales of about $585 million. Analysts polled by Thomson had expected Oakley to earn, on average, 67 cents a share on sales of $585.8 million.

The company’s shares fell as low as $11.50 in after-hours trading. The stock was down 37 cents at $12.54 in regular trading on the New York Stock Exchange.