Luxottica Annual Report 2007
The 2007 strategy of Luxottica Group - page 4

STRATEGY

OAKLEY

A wholly owned subsidiary of Luxottica, Oakley is a premium performance brand. Founded in California in 1975, Oakley designs, manufactures and distributes high performance sunglasses, prescription eyewear, goggles, electronically enabled eyewear, apparel, footwear and accessories. Luxottica acquired Oakley in November 2007, combining the resources, capabilities and talents of the two global companies.

OAKLEY BRAND OVERVIEW

Oakley blends science and art to redefine product categories by rejecting the constraints of conventional ideas. Oakley earned its heritage of authenticity by reinventing products from scratch, achieving superior quality and genuine innovation that delivers the unexpected. Holding more than 600 patents and 1,200 trademarks, Oakley offers technological and lifestyle performance to consumers in more than 100 countries.

OAKLEY TECHNOLOGY

Oakley innovation is backed by considerable research into new materials and technologically advanced production facilities. Such innovation not only reinvents performance in professional sport categories but delivers useful crossover to the lifestyle market as well.

OAKLEY PRODUCT CATEGORIES

Oakley invents each new product with a design philosophy called Sculptural Physics: the discipline of solving problems with science and wrapping those solutions in art.

Sunglasses
Numerous patents have been awarded for the innovations of High Definition Optics® (HDO®), and Oakley is recognized for its specially formulated lens colors, materials and coatings, proprietary frame architectures, and technologies of performance and protection, including polarized lenses to maintain precision optics.

Prescription eyewear
Oakley offers a comprehensive line of ophthalmic-specific frames, corrective sun lenses and optical laboratory services. Technologies include metal frames with shape memory, photochromic lenses that actively darken in response to sunlight, interchangeable prescription lenses, and the proprietary Oakley Rx system, which maps light rays in a three-dimensional grid to achieve precise coordination between the eye and the entire lens surface..

Goggles
Sports categories that rely on Oakley goggle technology include motocross, snowboarding, skiing, BMX, mountain biking and water sports. Oakley goggles feature scratch-resistant Plutonite or Lexan lenses, conical frames and multi-layered face foams for added comfort and durability. Optically correct lenses are engineered to maximize peripheral and downward vision while optimizing impact protection.

Electronically enabled eyewear
Oakley designs and distributes a limited line of electronically enabled eyewear incorporating digital music playback capability (in the MP3 file format) and Bluetooth® wireless technology that allow users to stay connected to calls and music while hiking, biking and doing virtually any activity where cords and wires would get in the way.

Apparel, footwear and accessories products
Oakley designs, develops and markets men’s and women’s apparel, including styles designed for surf, snow, golf, outdoor, motor sport, mountain bike and other athletic lifestyles. Oakley utilizes its design technologies to create technical apparel featuring innovations that enhance durability, performance and comfort for use during professional competitions, and then translates those innovations into products that are made available to the general public. Oakley’s innovative, performance-inspired footwear emphasizes superior performance, fit, durability and functionality. Oakley designs, assembles and distributes a comprehensive line of premium watches with an aesthetic emphasis on sculpture and styling. As with Oakley’s other products, its watches employ innovative blends of specialized materials to enhance performance, comfort and durability.

OAKLEY OPTICS PORTFOLIO BRANDS

In addition to Oakley-branded optics products, Oakley’s eyewear portfolio also includes Oliver Peoples, Eye Safety Systems, Fox Racing, Mosley Tribes, Paul Smith Spectacles and Dragon.

Oliver Peoples
Founded in 1986, Oliver Peoples helped establish the luxury eyewear market, and Oliver Peoples eyewear is worn by many of the world’s most well-known celebrities. Oliver Peoples’ classic designs fuse old-world aesthetics with modern-day finesse.

Eye Safety Systems
ESS designs, develops and markets advanced eye protection systems for military, fire fighting and law enforcement professionals and is a leading supplier of protective eyewear to the U.S. military and firefighting markets. Designed for hostile and unforgiving environments, ESS products ensure peak performance and uncompromised eye safety.

Fox Racing
Oakley is the exclusive worldwide licensee of Fox Racing (Fox), a leading apparel brand in the motocross industry, for sunglasses and goggles. Oakley designs, develops and manufactures optics products in cooperation with Fox and is responsible for worldwide marketing and distribution.

Mosley Tribes
The Mosley Tribes brand, launched in 2005, is a modern brand fusing fashion and urban lifestyles.

Paul Smith Spectacles
The licensed Paul Smith Spectacles brand, which launched in 1994, includes prescription eyewear and sunglasses that feature designs synonymous with one of Britain’s leading fashion designers.

Dragon
Dragon creates unique products that help define today’s youth by drawing influences from sports, art, youth-influenced music and street culture. Dragon’s sunglasses, goggles and accessories complement its customers’ independent attitude and authentic action sports lifestyles. Dragon products are currently sold at retailers in more than 45 countries around the world.

OAKLEY RETAIL PLATFORMS

In addition to its wholesale business, the Group acquired retail chains through Oakley, including Bright Eyes, Oakley Stores and Vaults, Sunglass Icon, The Optical Shop of Aspen, and Oliver Peoples.

Bright Eyes
Established in 1985, this is one of Australia’s largest and fastest-growing sunglass specialty retail chains. With over 140 stores, it offers a multi-branded selection ranging from pure sport to high fashion.

Oakley Stores and Oakley Vaults
Oakley Stores offer a full range of the company’s sunglasses, goggles, prescription eyewear, apparel, footwear and accessories. Oakley Vaults, an outlet store concept, feature discontinued and excess seasonal Oakley-branded merchandise in addition to newer products priced at full retail.

Sunglass Icon
Established in 1982, this is one of the nation’s largest specialty retailers of sunglasses and sunglass accessories. From pure sport to active lifestyle and fashion, Sunglass Icon’s multibranded assortment of fresh, cutting-edge and playful styles meets the needs of the most discriminating customer.

The Optical Shop of Aspen
The Optical Shop of Aspen operates luxury optical retail stores offering fashion and luxury eyewear from a variety of designers, including many Group-owned brands.

Oliver Peoples
Oliver Peoples operates four luxury optical retail stores selling Oliver Peoples products.

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