Oakley Names New CEO
Oakley Inc., still trying to recover from disappointing sales of its eye wear, announced Monday that Chief Executive Mike Parnell is being replaced by Link Newcomb, the company’s chief operating officer.
Parnell, who has been chief executive since 1986, will remain with the manufacturer of pricey sunglasses as vice chairman, focusing exclusively on sales and marketing.
Analysts viewed the management shuffle at Foothill Ranch-based Oakley as a step in the right direction, signaling the company’s awareness that it needs to bolster its operations and product deliveries.
“I think the recognition of Link Newcomb and his role at the company is important,” said analyst Marcia L. Aaron at Alex. Brown in San Francisco. “Mike has always been in sales and marketing--that’s his strength. Link has been focused more on operations.”
Oakley’s problems surfaced late last year when its largest customer, Coral Gables, Fla.-based Sunglass Hut retail chain, was stuck with a large amount of unsold product and canceled scheduled orders just before the holiday shopping season.
The snafu sent Oakley’s stock tumbling from a yearly high of $24.50 a share to a low of $8.38.
On Monday, Oakley’s stock closed at $12.75 a share, up 44 cents on the New York Stock Exchange.
Fewer sales to Sunglass Hut were also cited by Oakley as the reason for a 44% plunge in its second-quarter earnings. Net income for the three months ended June 30 fell to $8.8 million, from $15.7 million a year earlier, while sales were down 12% to $55.2 million, from $62.8 million.
