For the period, net sales reached a first-quarter record level of $141.8 million -- 10.2% growth year-over-year. Domestic sales improved by 8.8%, while international sales grew 11.5%. Fueling sales, its Thump brand of eyewear is cited as part of the success.
If there was one eyesore in Oakley's fourth-quarter results, it was its operating margins. But that's not the case in this period. For the first quarter, Oakley's operating profit margins jumped dramatically to 7.8% -- 50% higher than a year ago. The reason for the improvement: higher margins from new product releases, the weak U.S. dollar effect on international sales, and a price increase in U.S. eyewear.
Stir solid sales with a dash of improving margins, and voila -- a big serving of growth for the bottom line. Net income rocketed up to $7.4 million, off of super-charged growth of 76.2% compared to the same period a year ago.
Because of its very hip quarter, Oakley has revised its guidance upward for the year. The company now expects to hit the top end of its original revenue estimate of 10% to 15% growth. As for earnings, it anticipates an increase of 15% to 20% for the year.
The increased guidance certainly makes this stock, valued at 23 times earnings, look more attractive. While I still believe Oakley's stock is no bargain -- with accelerating growth and improving margins, this company certainly warrants further consideration.
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Fool contributor Jeremy MacNealy does not own shares in any of the companies mentioned.