Oakley sunglasses go digital to lure gadget hounds

Michael Kahn

SAN FRANCISCO: Oakley Inc. is jumping into the electronic age with sunglasses that play music and work with cell phones as it targets gadget lovers who want more than just protection from the sun.

The sports sunglasses maker plans in August to introduce its phone-ready "Razrwire" line, which works as a hands-free addition for Motorola Inc.'s popular Razr cell phones and marks the company's latest push into electronics as a way to move into new markets.

Razrwire follows the success of the digital music-playing Thump sunglasses, which have pumped up Oakley's profits since they were introduced last year and helped drive the company's current stock price to near a three-year high.

Still, some Wall Street analysts have cautioned that the foray into electronics masks slowed growth in Oakley's core sunglasses business.

But investors have cheered as Oakley raised its profit targets twice this year due to demand for products like Thump.

Oakley executives say they are confident Thump and Razrwire sunglasses, which let people receive calls and dial by voice at up to 30 feet from a compatible host cell phone, are the first of many electronic styles.

"The Thump release was just the beginning, and has opened up doors for us that we've always dreamed about," Jim Jannard, Oakley's founder and chief executive, told a recent investor conference call.

"The projects we are working on will greatly expand Oakley's presence in the wearable electronics market."

Oakley, founded in 1975 and based in Foothill Ranch, California, made its reputation as a sunglasses maker. But it has branched out into clothes, shoes, watches and other eyewear.

The company is using the electronic products to get into stores that do not typically carry sunglasses, he added.

The company expects Razrwire to build on the success of Thump, which during the last holiday season generated total sales of $20 million -- an amount that exceeded expectations.