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Oakley’s Q2 Earnings Show Marketing Push Pays Off

Foothill Ranch-based Oakley Inc.’s marketing push is paying off.

The sunglasses maker recently reported a big gain in second-quarter sales.

The jump is due in large part from strong sales of its sunglasses and other glasses and new advertising that plays up the styles, said analyst Eric Beder at Brean Murray, Carret & Co.

“We believe management’s plan to drive upside via optics and a more marketing driven business model has been vindicated,” Beder wrote in a recent report.

Oakley’s revenue for the quarter rose 29% from a year earlier to $263 million, helped by strong sales of sports glasses, clothes and sales from its stores.

Analysts on average had expected $244 million in sales.

Oakley earned $21.5 million in profits, in line with expectations.

The figure includes a $2 million charge related to the company’s planned acquisition by Italy’s Luxottica Group SPA, announced in June.

Net income was up 20% from a year earlier.

Sales of sunglasses, prescription frames and goggles led the gain, rising 31% to $207.5 million, or 78% of sales.

For the year, Oakley said it now expects sales of $930 million to $960 million, up 22% to 26% from 2006.

“We believe Luxottica is purchasing Oakley at an ideal time and at a fair price,” Beder said.

Oakley has revamped the way it promotes new products, such as sunglasses and clothes, in its marketing.

The company rolls out campaigns that include print ads, online ads and in some cases Web sites, such as for its women’s glasses.

Oakley started doing so a few years back while trying to put a bigger focus on its women’s offering.

The move has helped drive sales, Beder said.


Identity Crisis Client

Anaheim-based marketing firm Identity Crisis just picked up another client.

The shop was tapped by Access OC, a nonprofit in Irvine that offers free surgeries to uninsured patients.

The first job: shoot photography and design a brochure for Access OC.

“Not enough people know about the program,” said David Moyle, art director for Identity Crisis. “Our job is to help Access OC create a presence in the region and let individuals know that there is help available to them.”

Identity Crisis also created a logo, letterhead and Web site for one of the group’s programs, Super Saturday Surgeries.

Access OC is part of Health Funders Partnership of Orange County, which is comprised of doctors, healthcare providers and funding institutions.


More on Epic

Last week, I talked about marketing work that Aliso Viejo-based Epic Brand Communications is doing for Honeywell International Inc.’s HomMed division.

Since, I’ve gotten more details.

The shop hired an account supervisor to help with the work, said Doug Newbry, Epic principal and creative director.

Epic had connections to land the assignments: The agency’s principals worked with HomMed’s head of marketing at different companies in the past.

The shop also recently wrapped up campaigns for two other clients: ProCyte, a dermatology company, and Dako Denmark AS.

Epic also is getting ready to move, Newbry said.

“We are finalizing space plans for offices we will move into” later this year, Newbry said.

The new digs are expected to be double the size of current offices, he added.

The new offices will be nearby, in Aliso Viejo.


Register Insider

Santa Ana-based Orange County Register launched an advertising campaign that plays up the Register Insider, its loyalty rewards program.

The campaign includes ads in the Register and on its Web site, news rack cards, e-mail marketing, audio spots at grocery stores, bus shelter ads and signs at Register-sponsored events.

The rewards program was launched last year, and is free to subscribers of the paper. People can enter to win contests, get discounts, giveaways and news.

The advertising campaign brings “more visibility to some great perks” and encourages more people to sign up, said Joyce Marthaller, Register Insider manager.

“Register Insiders are really passionate about claiming the free offers and benefits through the site,” Marthaller said.

Some freebies being promoted on the Register Insider’s site include movie tickets, guest passes to the Orange County Museum of Art and a chance to win an autographed puck provided by the 2007 Stanley Cup champions, the Anaheim Ducks.

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