Results 1 to 20 of 20

Thread: Oakley aquires Olivers People................

  1. #1
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240

    Redhot Jumper Oakley aquires Olivers People................

    Feb. 8, 2006, 6:05PM
    (PZ) Oakley Acquires Oliver Peoples - a Leading Fashion Eyewear Brand
    Acquisition Supports Company's Multi-branded Optics Growth Strategy


    © 2006 PRIMEZONE

    FOOTHILL RANCH, Calif., Feb. 8, 2006 (PRIMEZONE) -- Oakley, Inc. (NYSE:OO) today announced the acquisition of privately-held Oliver Peoples, Inc., one of the world's most recognized and most respected luxury eyewear companies, and its subsidiaries. As a result of the acquisition, Oakley has acquired Oliver Peoples' three eyewear brands: Oliver Peoples(R), Mosley Tribes(R), and the licensed Paul Smith(R) eyewear brand.

    "Oakley's core business is optics and this will be a focus of our long-term strategy," said Scott Olivet, chief executive officer, Oakley, Inc. "While growing Oakley eyewear is our first priority, we also believe that we can capitalize on complementary consumer and market segments with a multi-branding approach. This will enable us to leverage our capabilities in optics, design, and manufacturing without compromising the Oakley brand's authenticity."
    "The acquisition of Oliver Peoples, Mosley Tribes and the Paul Smith license is a tremendous start in the creation of a targeted portfolio of brands. Their position in the fashion eyewear market complements Oakley's leadership in sport performance and active eyewear," continued Olivet. "The brands will access different consumers, distribution channels, and design inspiration while simultaneously benefiting from shared experience, capabilities, and resources."

    "Oakley and Oliver Peoples are well-respected brands known for their long history of innovation, quality and consumer loyalty," said Cos Lykos, vice president of business development, Oakley, Inc. "This acquisition will improve Oakley, Inc.'s core sunglass and prescription eyewear market share and marks an important first step in our multi-branded optics business strategy."

    "We are very enthusiastic about working with Oakley, the worldwide leader in performance eyewear, and the opportunity to grow our existing luxury eyewear business," said Larry Leight, chief executive officer and chief design officer of Oliver Peoples. "Paramount to this partnership is our continued focus on selective distribution and discreet branding that is fundamental to the discoverability, desirability and exclusivity of Oliver Peoples' products. Together, we will have enhanced resources to further build our brand, expand our strong retail relationships and strengthen our operational capabilities."

    The acquisition's aggregate purchase price of up to $55.7 million, subject to post closing adjustments, includes the assumption of approximately $5.0 million of debt and up to $4.0 million in earn-out incentives. Oakley expects the acquisition to be slightly accretive to earnings in 2006.

    About Oliver Peoples

    Headquartered in Los Angeles, CA, Oliver Peoples was co-founded in 1986 by optician and designer Larry Leight. The company currently has distribution in more than 45 countries worldwide and operates five retail stores located in New York (2 stores), Los Angeles, Costa Mesa and Tokyo.

    Oliver Peoples eyewear is seen on many of the world's most well-known celebrities and helped establish the luxury eyewear market. The classic designs fuse old-world aesthetics with modern-day finesse and are priced from $210-420. Paul Smith Spectacles, launched in 1994, includes prescription eyewear and sunglasses featuring whimsical yet classic designs with attention to detail synonymous with one of Britain's leading fashion designers and is priced from $235-335. Launched in 2005, Mosley Tribes is a modern lifestyle brand fusing utility and style and retails from $120-240.

    About Oakley, Inc.

    Oakley: a world brand, driven to ignite the imagination through the fusion of art and science. Building on its legacy of innovative, market-leading premium sunglasses, the company offers a full array of products including performance and lifestyle apparel, accessories, prescription eyewear, footwear, wristwatches and electronics to consumers in more than 100 countries. Trailing-12-month net sales through September 30, 2005 totaled $638.7 million and generated net income of $52.6 million. Oakley, Inc. press releases, SEC filings and the company's annual report are available at www.oakley.com.

    The Oakley Inc. logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=1533

    Safe Harbor Disclaimer

    This press release contains certain statements of a forward-looking nature. Such statements are made pursuant to the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are limited to growth and strategies, future operating and financial results, financial expectations and current business indicators and typically identified by the use of terms such as "look," "may," "will," "should," "might," "believe," "plan," "expect," "anticipate," "estimate" and similar words, although some forward-looking statements are expressed differently. The accuracy of such statements may be affected by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including but not limited to: risks related to the successful implementation and operation of the company's multi-branded eyewear growth strategy, the company's ability to optimize manufacturing processes, incorporate Oakley's High Definition Optics and expand the brands into additional international markets; the company's ability to integrate the acquisition and benefit from accretive earnings in 2006; the company's ability to manage rapid growth; risks related to the limited visibility of future sunglass orders associated with the company's "at once" production and fulfillment business model; the ability to identify qualified manufacturing partners; the ability to coordinate product development and production processes with those partners; the ability of those manufacturing partners and the company's internal production operations to increase production volumes on raw materials and finished goods in a timely fashion in response to increasing demand and enable the company to achieve timely delivery of finished goods to its retail customers; the ability to provide adequate fixturing to existing and future retail customers to meet anticipated needs and schedules; the dependence on eyewear sales to Luxottica Group S.p.A, which, as a major competitor, could materially alter or terminate its relationship with the company; the company's ability to expand and grow its distribution channels and its own retail operations; unanticipated changes in general market conditions or other factors, which may result in cancellations of advance orders or a reduction in the rate of reorders placed by retailers; a weakening of economic conditions could continue to reduce demand for products sold by the company and could adversely affect profitability, especially of the company's retail operations; terrorist acts, or the threat thereof, could adversely affect consumer confidence and spending, could interrupt production and distribution of product and raw materials and could, as a result, adversely affect the company's operations and financial performance; the ability of the company to integrate licensing arrangements without adversely affecting operations and the success of such initiatives; the ability to continue to develop and produce innovative new products and introduce them in a timely manner; the acceptance in the marketplace of the company's new products and changes in consumer preferences; reductions in sales of products, either as the result of economic or other conditions or reduced consumer acceptance of a product, could result in a buildup of inventory; the ability to source raw materials and finished products at favorable prices to the company; the potential impact of periodic power crises on the company's operations including temporary blackouts at the company's facilities; foreign currency exchange rate fluctuations; earthquakes or other natural disasters; the company's ability to identify and execute successfully cost control initiatives; and other risks outlined in the company's SEC filings, including but not limited to its Annual Report on Form 10-K for the year ended December 31, 2004, its Quarterly Report on From 10-Q for the quarter ended September 30, 2005 and other filings made periodically by the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to update this forward-looking information, except as it is required to do so by securities laws. Nonetheless, the company reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.

    CONTACT: Oakley, Inc. Lance Allega, Director of Investor Relations (949) 672-6985 lallega@oakley.com PondelWilkinson Rob Whetstone, Investor Relations Counsel (310) 279-5963 rwhetstone@pondel.com

  2. #2
    What's up? drk's Avatar
    Join Date
    Mar 2004
    Location
    Ohio
    Occupation
    Optometrist
    Posts
    9,387
    Impressive move. Oakley has cash to burn, apparently. Maybe they'll let us off the hook with their ophthalmic a little. They're a player in ophthalmic, now.

  3. #3
    OptiBoard Professional
    Join Date
    Jun 2000
    Location
    USA
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    233
    drk: "Maybe they'll let us off the hook with their ophthalmic a little. They're a player in ophthalmic, now."

    They are indeed becoming a meaningful Rx player. They sold around $50 million in 2005.

    They also plan to have dispensers in most and perhaps all of their estimated 20 new "O" store openings this year.

    Some of their efforts are defensive. Sales were up 6% in Oct/Dec. vs. a year ago but profits fell 8%. A higher tax rate and disadvantageous foreign exchange rate comparisons affected profits but the trend is clearly weak. In addition, their supply agreement with the Hut expired at the end of 2005. Negotiations continue and orders are still being placed but at some point their Hut business may disappear. They have also benefited greatly from sales to the military. At some point that need will hopefully fade.

  4. #4
    Allen Weatherby
    Join Date
    Jun 2004
    Location
    Florida
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    1,286

    What does this mean drk

    drk

    Maybe they'll let us off the hook with their ophthalmic a little.
    What do you mean by this? How are you on the hook? Why do you need to get off?

  5. #5
    Ophthalmic Optician
    Join Date
    Sep 2001
    Location
    USSA
    Occupation
    Dispensing Optician
    Posts
    12,591
    The hook: If you a an optical retailer, as opposed to a sun retailer, they want you to carry their ophthalmics. The problem is that up until recently, the ophthalmics hve been designed by someone(s) that hve absolutely no clue as to fit,comfort, or what the product is used for. NONE.

    So, you buy these frames, and they sit. Once in a while, you'll get a daring (ignorant) 15 year old that tells his mom "I only wear Oakleys - dude!" We tell them to pay attention to the fit, and they say "Check 'em out! They're look awesome! They feel OK!" Then, a week after they buy them, they realize how lightweight they are - when compared to small SUV, and want to get something else.

    Lately, the designs are better, and we even sell a few of them. Another plus, Oakley doesn't price-fix the ophthalmics like the suns.

  6. #6
    Allen Weatherby
    Join Date
    Jun 2004
    Location
    Florida
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    1,286

    Oakley Rx

    Johns:
    Lately, the designs are better, and we even sell a few of them. Another plus, Oakley doesn't price-fix the ophthalmics like the suns.
    I don't know that price-fix is correct or price regulate but my point is they could do this on the Rx range also except for the lens is an unknown. The customer buys a complete package, frame and lens.

    I know what you mean about the first Oakley Rx products, and they do seem to be getting better.

    After an Rx sale almost any patient can call some other optical establishment that will indicate that they were taken advantage of, and should have come to them first. Sort of like buying a new car. Ask a car salesman at a competing dealer if you got a good deal on the car you just bought from dealer "X". 9 out 10 will tell you how they could have saved you money.

  7. #7
    Ophthalmic Optician
    Join Date
    Sep 2001
    Location
    USSA
    Occupation
    Dispensing Optician
    Posts
    12,591
    Quote Originally Posted by AWTECH
    Johns:

    I don't know that price-fix is correct or price regulate but my point is they could do this on the Rx range also except for the lens is an unknown. The customer buys a complete package, frame and lens.

    After an Rx sale almost any patient can call some other optical establishment that will indicate that they were taken advantage of, and should have come to them first. Sort of like buying a new car. Ask a car salesman at a competing dealer if you got a good deal on the car you just bought from dealer "X". 9 out 10 will tell you how they could have saved you money.

    Re: Price fixing / pkgs


    There is an msrp on all the Oakley suns, and if you deviate from it, you are not allowed to sell the product. Fix/Regulate -no difference to me.

    There is no msrp on the ophthalmics, and they go out of their way to highlight that to the opticals.

    As far as packages - we only package our kids products. None of our Oakley products suns or ophthalmics are package priced.

    Consumers checking prices w/ other dealers:

    Sure, most opticals will do the same. The good thing about Oakley (and OP) is that they do restrict the amount of vendors in a given area. Yes, some areas are over capactiy, but in my area, there are none within 35 miles, so that 's a no-brainer for us. I

    As far as the car analogy, if you bought an Austin Martin (Oakley ophthalmic, Olivier P), you can't call your Ford dealer (Sears, Joe Blow optical) and see how you did on your deal. You'd have to call a major city that is probably inconvenient to go to for service, and find a dealer there. The Ford dealer may tell you that the product is no good, just as many opticals will do to make up for the fact they don't carry a specific line.
    Last edited by Johns; 02-11-2006 at 08:18 PM.

  8. #8
    Bad address email on file QDO1's Avatar
    Join Date
    Sep 2005
    Location
    UK
    Occupation
    Dispensing Optician
    Posts
    1,961
    I have found Oakley one of the harshest and un-reasonable companies to deal with, to the point where in the past I have refused to deal with them

    Good luck to Olivers Peoplkes stockists, I would be beginning to look for a alternative range

  9. #9
    Master OptiBoarder
    Join Date
    Oct 2005
    Location
    new york
    Occupation
    Optometrist
    Posts
    3,749
    Quote Originally Posted by AWTECH
    Johns:



    After an Rx sale almost any patient can call some other optical establishment that will indicate that they were taken advantage of, and should have come to them first. Sort of like buying a new car. Ask a car salesman at a competing dealer if you got a good deal on the car you just bought from dealer "X". 9 out 10 will tell you how they could have saved you money.
    This would be an excellent topic for another thread.

  10. #10
    OptiBoard Professional Eddie G's's Avatar
    Join Date
    Sep 2003
    Location
    Toronto, Canada
    Occupation
    Dispensing Optician
    Posts
    205
    This is great news!!!

    I love OAKLEY products.

  11. #11
    Ophthalmic Optician
    Join Date
    Sep 2001
    Location
    USSA
    Occupation
    Dispensing Optician
    Posts
    12,591
    I would agree that Oakley is one of the worst in terms of cust. service.

    Last April, we accidentally double paid our Oakley invoice. We had a credit of $4,650! I called them immediately, and it took until September to finally get paid back! They said we never "officially" requested the money back! I had to threaten to fly out and camp on their doorstep. (I told them that a $450 plane ticket was only 10% of what they owed me, and it would be worth it.)

  12. #12
    Master OptiBoarder spartus's Avatar
    Join Date
    Jan 2005
    Location
    CA
    Occupation
    Optical Retail
    Posts
    552
    Being so close to Oakley's HQ (~15 miles), they treat us very well. Could be that the local reps you guys are getting in the rest of the country are a little too enthused that they work for OAKLEY! DUDE! and are getting a little too big for their britches.

    It's also been my experience that more often than not when you call, you get a knucklehead on the phone. However, to me, they're local knuckleheads, so I know the proper way to at least get my point across in fewer than, say, 10 attempts.

    I also agree that their ophthalmic designs over the past six months have been a major improvement. I'm wearing one right now, in fact.

    Anyway, back to the topic of the thread. I said this a few months ago when this was rumored, and I'll say it again: I don't get it. Image-conscious post-modern (some might say post-nuclear) sunglass/eyeglass/sportswear firm acquires determinedly non-image-conscious retro-style eyeglass company. The only thing I can figure is that it's an upmarket move. Oakley does definitely skew younger, and OP appeals to a similar demo, only older. I guess they've decided that this is the only way to age with what were their consumers without destroying the carefully cultivated hip-youngster Oakley vibe.

  13. #13
    Allen Weatherby
    Join Date
    Jun 2004
    Location
    Florida
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    1,286

    Strategy

    spartus:
    I don't get it. Image-conscious post-modern (some might say post-nuclear) sunglass/eyeglass/sportswear firm acquires determinedly non-image-conscious retro-style eyeglass company.
    It makes a great business growth strategy for Oakley. Almost every potential Oakley customer has an Oakley. The way for them to grow the business is through retail stores which they have been expanding and control the brands sold at those retail stores. They saw the trap that Sunglass Hut created for them and for Sunglass Hut and I am sure they are trying to make sure that future growth does not put them in a trap.

    Oliver Peoples customers are most likely not Oakley customers, so they will not be cannibalizing there existing business. Plus they get a group of people who have optical distribution experience. I think both the Oakley Rx line and the Oliver Peoples total sales are about the same.

  14. #14
    Bad address email on file Mikef's Avatar
    Join Date
    Jan 2002
    Location
    Red Sox Nation
    Occupation
    Optical Wholesale Lab (other positions)
    Posts
    864
    Oakley has been buying optical shops of a few years now. Oliver Peoples has retail shops as well. I'm sure they will purchase more RX brands in the future to fill their retail shops. In the next 2 or three years I think you will see Oakley's optical shops grow ten fold!

    Safilo is doing the same. They bought a 10 store chain (Solstice) and they now have about 100 retail shops. They are VERY large Sunglass shops!(1200 Sq ft.) I think it is just a matter of time before the start to RX.

  15. #15
    Master OptiBoarder spartus's Avatar
    Join Date
    Jan 2005
    Location
    CA
    Occupation
    Optical Retail
    Posts
    552
    Quote Originally Posted by AWTECH
    spartus:


    It makes a great business growth strategy for Oakley. Almost every potential Oakley customer has an Oakley. The way for them to grow the business is through retail stores which they have been expanding and control the brands sold at those retail stores. They saw the trap that Sunglass Hut created for them and for Sunglass Hut and I am sure they are trying to make sure that future growth does not put them in a trap.

    Oliver Peoples customers are most likely not Oakley customers, so they will not be cannibalizing there existing business. Plus they get a group of people who have optical distribution experience. I think both the Oakley Rx line and the Oliver Peoples total sales are about the same.
    I get what you mean, and that's what I was coming around to figuring what they're up to, but the sticking point for me is that everything that Oakley makes is, very clearly, an Oakley, with logos (they call them "Icons", har har) stuck all over the place and pretty individualistic styling. Oliver Peoples, by contrast, is a very deliberately non-branded line. Given Oakley's fixation with brand identity, it seems a strange combo.

    Around here, where people have been Oakley customers since the early 80s, they're starting to outgrow the style, and OP could be a direction they go in. Oakley isn't always a line that you can put 40- and 50 year-olds in (though I did yesterday), so it's a different branch on the tree. The one thing I wonder is if they'll Oakley-brand it, or let it loose as an independently operated subsidiary.

    Mikef, I totally agree on the retail storefront end. There are not a lot of optical lines that can carry off their own store on the merits of the eyewear brand alone, although Oakley does have the apparel/watch/general tchotchke merchandise to fill out the racks. Never been to the OP store, so maybe they've got the same thing going.

    One thing I'm hoping for in this buyout is that OP's return policy improves. Two for one sucks.

  16. #16
    OptiBoard Professional
    Join Date
    Jun 2000
    Location
    USA
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    233
    I agree with AWTECH that Oakley's OP acquisition is logical. It is clear that retail and Rx are key growth areas for Oakley. OP will help them with both.

    Mikef, Safilo's Solistice chain is at 55 stores but continued expansion is certain. Evolution to Rx retail is less certain. They lack the financial resources to do it in a meaningful way. They'd risk losing current customers for a fairly small benefit. Also they are more a sunglass company than a Rx firm; Rx only produced 41% of sales in 2005. Rx sales fell slightly last year and sunglass sales were up 18%.

    Premium sunwear is growing faster than Rx. It makes more sense for Safilo to go with that momentum.

    The unknown factor that could shift them towards Rx retail is if they lose Ralph Lauren at the end of this year and are unable to sign a suitable replacement. Losing RL would hurt them a great deal, especially in the US.

  17. #17
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240

    Thumbs down

    Quote Originally Posted by Eddie G's
    This is great news!!!

    I love OAKLEY products.
    I am not so sure that this is great news....................more and more companies are getting consolidated............getting more and more into the retail end,because of fear that a competitor will take it all. In the meantime the independent might be winning, but is doomed to end up being the looser.

  18. #18
    What's up? drk's Avatar
    Join Date
    Mar 2004
    Location
    Ohio
    Occupation
    Optometrist
    Posts
    9,387
    Quote Originally Posted by Johns
    The hook: If you a an optical retailer, as opposed to a sun retailer, they want you to carry their ophthalmics. The problem is that up until recently, the ophthalmics hve been designed by someone(s) that hve absolutely no clue as to fit,comfort, or what the product is used for. NONE.

    So, you buy these frames, and they sit. Once in a while, you'll get a daring (ignorant) 15 year old that tells his mom "I only wear Oakleys - dude!" We tell them to pay attention to the fit, and they say "Check 'em out! They're look awesome! They feel OK!" Then, a week after they buy them, they realize how lightweight they are - when compared to small SUV, and want to get something else.

    Lately, the designs are better, and we even sell a few of them. Another plus, Oakley doesn't price-fix the ophthalmics like the suns.
    LOL! Too accurate!

  19. #19
    What's up? drk's Avatar
    Join Date
    Mar 2004
    Location
    Ohio
    Occupation
    Optometrist
    Posts
    9,387
    "When Impact 500 speaks, people listen."

  20. #20
    Banned
    Join Date
    Jun 2000
    Location
    Only City in the World built over a Volcano
    Occupation
    Dispensing Optician
    Posts
    12,996
    What's all the fuss about, most of us couldn''t afford to stock either line even if the snobs would sell it to us anyway.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Oakley Thump - Long Life or Slow Death?
    By Jason Carruthers in forum General Optics and Eyecare Discussion Forum
    Replies: 19
    Last Post: 04-21-2005, 11:04 AM
  2. Luxottica and Oakley.............................
    By Chris Ryser in forum General Optics and Eyecare Discussion Forum
    Replies: 1
    Last Post: 01-18-2005, 11:31 AM
  3. OAKLEY Sunglass/MP3 Player...
    By Eddie G's in forum General Optics and Eyecare Discussion Forum
    Replies: 0
    Last Post: 07-22-2004, 02:57 PM
  4. Something got me to thinkin' yesterday...
    By Darris Chambless in forum Just Conversation
    Replies: 12
    Last Post: 03-15-2004, 11:13 AM
  5. Why people annoy me. By Darris Chambless
    By Darris Chambless in forum Just Conversation
    Replies: 14
    Last Post: 08-14-2001, 02:01 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •