Oakley up double digit and has eyes on emerging markets

03/03/2010

Premium sunglasses brand Oakley grew double digit in 2009, according to Italy's Luxottica Group. Although, the group reported that overall sales declined 6.4% in the fourth quarter of 2009.

Luxottica, which owns the Ray-Ban and Oakley brands and the retail outlet Sunglass Hut, expects Oakley to be pivotal in 2010. The company acquired Oakley in 2007. It will intensify its support for the brand across Europe in 2010 and expects to complete the integration of the brand into its Brazil operations this year. In addition, Luxottica will build the brand's position in the optical prescription business.

The Italian eyewear player is targeting Brazil, India and China for future growth. This is expected to take its share of sales in emerging markets to around one fifth of its global revenues.

According to a report by the Financial Times, Andrea Guerra, Chief Executive of the Milan-based group, said the aim was that these three countries and other selected emerging markets would account for 20% of sales and 12% of retail outlets by 2012. This is compared to 14% and 6% respectively in 2009.

Guerra added, "We will continue to make small to medium acquisitions in emerging markets. In 2011 and 2012 we will look for other opportunities around the world, and there will be such opportunities."

In addition to further expansion in emerging markets during 2010, the group is targeting growth in the US, alongside a steady focus on the strength of the balance sheet and cash flow generation.

www.oakley.com

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