Oakley Sees Higher Sales on New Gear
By JENNIFER BELLANTONIO
Foothill Ranch-based sunglass maker Oakley Inc. is eyeing new product lines to fuel its growth.
The company, known for its vault-like headquarters with sky-high domes and dark rooms, continues to expand with new prescription eyewear, apparel, wristwatches and footwear.
It’s also boosted its retail operations and that of Iacon Inc., a sunglass chain it bought two years ago.
The moves have built momentum for Oakley. The company recorded 63.2% growth in annual sales to $489.9 million for the year ended June 30, versus $300.2 million in 2000. That earned it the No. 32 spot on this year’s list of fastest-growing OC-based companies.
But growth hasn’t come without some pains.
The company recently scaled back its 2003 sales growth target to 10% versus the previously announced 15%.
Oakley’s second-quarter sales were down 1% to $143.8 million compared to a year earlier. The dip was due to softer U.S. sales, which fell 10.5% to $76.8 million in the period. International sales were up 13% to $67 million.
Oakley blamed a tepid economy and cold weather for sluggish sunglasses sales, which made up about 62% of its sales last year.
Measures include restructuring European operations and cutting outside sales agents.
Oakley continues to make adjustments, as it did in 2001, when it faced a big hiccup with retailer Sunglass Hut International Inc. Ties with the retailer hit the rocks after Sunglass Hut was bought by Oakley rival Luxottica Group SPA. But the two have made peace with a three-year pact to again offer Oakley at Sunglass Huts.
Oakley also forged new ties. One of them: buying Iacon, which has helped drive retail sales.
Sales through Oakley retail operations jumped 54.8% in the second quarter to $13.7 million versus a year ago. The increase resulted from opening new stores (five new O stores and four new Iacon) during the quarter. Oakley operated 20 O-stores and 67 Iacon stores as of June 30.
The company continues to build its retail empire, as well as expand its new product lines.
