Significant Change in Luxottica -- Sunglass Hut Order Patterns
investor.oakley.com
"Oakley's 10 consecutive quarters of record sales clearly demonstrate the demand momentum for Oakley products, and we believe our relationship with Oakley consumers has never been stronger."
"However, decisions communicated to us just this week by Luxottica management make it clear that they do not intend to continue participating in our brand's success at the same level as we understood from them as recently as our meeting together three weeks ago, opting instead to favor their own in-house brands. These decisions include a refusal to offer consumers Oakley's 2001 sunglass introductions, including the X-Metal(R) Penny, Scar and Why3, in any meaningful quantities. Their loss."
--Oakley Chairman and CEO Jim Jannard
In any case, we're near the peak of the (old) seasonal pattern for OO which was around late July, approximately coincident with sunglass sales.
A higher percentage of sunglass sales to the Southern Hemisphere as well as greater contributions from other product lines such as footwear may now provide some damping, but still, there's probably no urgency to revisit the stock before late January.
In the meantime, what's needed is a counter-seasonal stock for the other half-year, July to January. |
