Oakley Profile

Oakley, Inc. (Oakley) is engaged in the design, development, manufacture, distribution and worldwide marketing of consumer products, including eyewear (sunglasses, prescription eyewear, goggles and electronically enabled eyewear), apparel, footwear, watches and accessories. The Company sells its products to retail accounts, through Oakley-owned O Stores, Vaults, through more than 100 mall-based sunglass specialty stores in the United States, and through a mix of independent distributors and licensees in more than 100 countries. Oakley manufactures and assembles the majority of its eyewear products at the Company's manufacturing facility located at its headquarters in Foothill Ranch, California. On February 8, 2006, the Company announced the acquisition of privately held Oliver Peoples, Inc., which designs, produces and sells luxury eyewear. For the six months ended 30 June 2006, Oakley, Inc.'s net sales increased 14% to $355.3M. Net income decreased 42% to $19.8M. Revenues reflect the increased contribution of sunglasses, launch of first womens collection and acquisition of Oliver Peoples. Net income was offset by decreased margins, increased research & development expenses, increased selling expenses and increased general & administrative expenses.