Oakley to Buy Sunglasses Retailer

Sunglasses maker Oakley Inc., moving to compensate for lost sales through its largest customer, Sunglass Hut International Inc., said Monday it agreed to buy Iacon Inc., a sunglasses retailer with 40 stores in malls. Terms were not disclosed.

Privately held Iacon, based in Scottsdale, Ariz., operates stores under the names Sunglass Designs, Sporting Eyes and Occhiali da Soles. The chain, which has four stores in Southern California, had revenue of about $15 million in the 12 months ended Aug. 31. Oakley’s sunglasses accounted for about 26% of the total.

Oakley’s shares rose 18%, or $1.96, to $12.66, on the New York Stock Exchange.

Foothill Ranch-based Oakley warned in August that its earnings would fall in the second half because Sunglass Hut owner Luxottica Group had reduced orders to make room for its own brands, such as Ray Ban, Armani and Chanel.

Sunglass Hut, which has about 2,000 stores worldwide, accounted for 19% of Oakley’s sales in the last fiscal year.

The Iacon purchase is expected to close by the end of October. The stores will continue to sell Luxottica products, said Link Newcomb, Oakley’s chief operating officer.