Oakley announced that its third-quarter earnings "beat"
analysts' expectations and that it "plans to further please
Wall Street by sending most footwear manufacturing
overseas," according to Barbara Kingsley of the ORANGE
COUNTY REGISTER. Oakley's earnings for the quarter ended
September 30 were $10.3M, up 25% from last year, and its net
sales increased 5.3%, to $70.8M. Oakley COO Link Newcomb
said that international sales rose 17%, to a record $33.5M,
and that company officials were "probably a little surprised
in the strength in our international business." However,
net sales in the U.S. were down 3%, to $237.3M, "primarily
because of a" 28% drop in sales to Sunglass Hut, the
company's largest customer (ORANGE COUNTY REGISTER, 10/21).
SHOE NEWS: Newcomb, on Oakley's entrance into the shoe
market: "We have not been profitable in the footwear line."
Oakley's first line of shoes, introduced at $125 last
summer, were made in the U.S., but now the company will
"probably" move manufacturing to Asia "to bring product to
market at a more competitive price and increase our
profits." Moving its shoe operations overseas will allow
the company "to offer a broader range of styles and prices"
at a higher volume (ORANGE COUNTY REGISTER, 10/21).
