FOOTHILL RANCH, Calif.--Oakley set records for both net sales and net income in its 2005 fiscal year, according to preliminary, unaudited financial results announced early this month.

Last year, Oakley’s net sales reached a record $648.1 million, up 10.7 percent over the prior year.

The company’s gross sunglass sales were $336.8 million for the year, up 7.1 percent. Sales to Luxottica Group, which represented about 7 percent of total sales, rose 1 percent to $45.1 million.

Oakley’s U.S. net sales were $343.4 million in 2005, up 12.6 percent. International sales rose 8.6 percent to $304.7 million.

Sales through Oakley’s 149 U.S. retail stores (105 Iacon sunwear stores and 44 O stores at year-end) were $101 million for the year, a 39.5 percent increase. Those retail sales represented 29.4 percent of the company’s U.S. net sales in 2005 and 15.6 percent of Oakley’s total net sales for the year.

In its fourth quarter ended Dec. 31, Oakley had record sales of $162.4 million, up 6.2 percent. Net income slipped during the period, however, to $9.2 million, compared to $10 million in the fourth quarter of 2004; the company attributed the decline to a higher tax rate in 2005.

In the quarter, Oakley’s U.S. net sales excluding revenues from its retail stores dropped 4.8 percent to $59.1 million. International sales rose 5.7 percent to $73.8 million in the period.

The company said it expects its revenues to grow by 10 percent annually in both fiscal 2006 and fiscal 2007.