Nike Deal Could Stall Oakley’s Revival Plan

Oakley Inc. continues to maintain that new products in the pipeline will reinvigorate the Foothill Ranch-based company’s revenue and net profit.

As the summer months roll by, Oakley will have its chance to make its case, as consumers stock up with protective eye wear. But Oakley also faces increased heat from a formidable competitor.

Nike Inc. has announced that Sunglass Hut International, the Coral Gables, Fla.-based sunglass and eye wear chain, has agreed to stock its upscale line of eye wear. Like Oakley, Nike hopes to carve out a major position in the sport-specific end of the eye wear market.

There are similarities: Oakley and Nike both say their products are high-quality, cutting-edge merchandise. And both companies are known for their marketing programs.

Both also are associated with basketball star Michael Jordan, who wears Nike shoes and apparel but reserves his eyes for Oakley.

There is another potential cloud on the horizon for Oakley. Just weeks after Sunglass Hut and Nike joined forces, Sunglass Hut President and Chief Executive Officer Jack B. Chadsey resigned to pursue other interests.

Oakley’s fortunes have risen--and, in recent months, fallen--with Sunglass Hut, the single largest retail outlet for Oakley eye wear. In recent months, Sunglass Hut’s stalled sales have hurt Oakley’s performance.

Greg Johnson covers retail businesses and restaurants for The Times. He can be reached at (714) 966-5950 and at [email protected]