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Luxottica says Oakley hot in all regions

Luxottica says Oakley hot in
By Tiffany Montgomery
August 06, 2008 7:01 AM

It's been 12 months since Luxottica bought Oakley, one of its biggest competitors. Since the acquisition, Oakley's wholesale and retail divisions have peformed "well above market trends," Luxottica said.


I found the data in Luxottica's second quarter earnings presentation that took place last week.


Here's some other interesting Oakley news:


- Oakley is "very hot across all regions," the company said.


- Oakley total sales increased 19.6 percent in the second quarter. Revenues grew double digits in the U.S. and internationally.


- Internationally, Oakley showed particular strength in Australia, Canada, Japan and Brazil.


- Same-store sales at Oakley retail stores rose 14.7 percent in the quarter.


- On the wholesale side, strong channels included military, law enforcement, lifestyle, department store and e-commerce.


- Oakley's integration into Luxottica's European infrastructure is complete.


- Oakley has geared up for China and the Olympics by sponsoring 500 athletes including half of the Chinese Olympic team. Oakley product has also been integrated into Luxottica's Lenscrafter stores in China ahead of the games.


- Overall, Luxottica said Oakley has delivered results and was not distracted by the hard work of integrating the two companies. The companies are also discovering talents in each organization to run new group-wide projects, Luxottica said.


Other Luxottica results/news


- Ray-Ban posted "excellent" results


- Total retail sales at Luxottica stores in the U.S. (excluding Oakley) declined 1.5 percent. Sunglass Hut same-store sales fell 3 percent.


- The company has reduced expenses in its retail division by trimming store labor, reducing SG & A head count, and adjusting its advertising spend.


- Luxottica has launched a new store called Ilori that carries luxury eyeglass brands. Ilori had 11 stores at the end of June and will have 20 by year's end. One hundred stores are planned for the U.S. in the next two years. Average annual sales per store are expected to reach $1 million. Luxottica brands comprise 60 percent of the merchandise mix.


- On the wholesale side, sunglass sales in Europe have improved since mid-June after a rainy spring.


- Luxottica second quarter sales in Japan were lower than the same quarter last year.


- The company is experiencing "solid growth" in emerging markets. Luxottica is looking for new retail projects there.


- Luxottica describes the fashion and premium market as resilient, while the luxury market weakened.


- The company expects to put lots of the one-time charges for integrating Oakley into the company behind it and says synergies will increase going forward. In the second quarter, earnings per share rose 8 percent in U.S. dollars and fell 6.8 percent in Euros.


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