The Next Big Thing After X-metals -- NEW 100 Million Dollar Deal

[greg]

I recently had a conversation with another forum member over what oakley will do next to replace the x-metal line. He seemed sure that oakley was going to do a summer release of something big to replace the x-metal market. I however, disagree. Oakley is now a publicly traded company where profit is all that matters. Luxottica is making way too much money selling plastic. The frames are now being made in China, and profits are soon to be at an all time high. I think the direction oakley is going is forming partnerships with premiere brands like ferrari and the likes. By doing this, they will build their brand and further enhance their markets by reaching ferrari owners and the like. Furthermore, I think oakley will be the sports division of luxottica, You see it now in their promotions that "more athletes win championships wear oakley eye wear than any other". They make football visors, hockey visors, cycling glasses and the like. I think this will primarily be their focus for oakley. I in no way see them risking profit to start a new line that might fail to meet expectations. Sure we would all love to see something new and comparable to the x-metals, but I dont think the shareholders or the executives are super excited about starting a line that only a appeals to a miniority and not the majority. What I mean by that is, when you're at the mall and or out in public... you see someone wearing oakleys, are they x-metals??? probably not. Usually they're flak jackets, gascans etc. Thus Oakley executives as a whole and the share holders of the company would only want to produce glasses that appeal to the masses and thus increase profit. I dont think we will ever see the likes of a medusa or OTT ever again and certainly not x-metals. I could be wrong, but again why invest resources into something that sells 25,000 units when they can invest in something that sells half a million units?

I would love your input... Please realize that we ALL might want something comparable to the x-metal line, but again would it be more profitable to sell plastic or carbon fiber? That answer is always plastic. enough said.

Below is a new report of Luxottica closing a 100 million dollar deal with new partnerships, again I dont think anything comparable to x-metals is in the works any time soon.

Luxottica expects to sign $100-mil eyewear licence| Reuters

 

[xmetalmaniac]

I see the beating of a dead horse here.... This has been discussed numerous times in several different threads. Oakley's foundation began by creating a better grip for BMX riders. The evolution of Oakley focused on selling better made products, or products to meet a purpose, or a purpose beyond reason. The fact they use sports specific products allows them to get their product out into the public faster, plus they have been making the sports related gear for a LONG time.... Just like their carbon x race wear and shoes which were designed for motorsports drivers. Doesnt mean its going to sell to the general public to wear, they made it because they wanted to provide a product to the motor circuit and sell to them. Oakley forms partnerships with certain companies, athletes, artists for different reasons. You think there new titanium/carbon fiber sunglasses are going to be worn by every Ferrari owner? Then why not merge with Toyota, Ford, Nissan, Chevy, Porsche, Dodge, Lamborghini, and make pairs for them too. There are more Toyota and Porsche owners then Ferrari. It's not going to last forever, just like why did they merge with Ducati? They made a decision to go into making something together. The X Metal line is NOT getting replaced, the line is done. Something different has appeared to be made. Its a promotion, everyone loves to use them, and promotions have been used since items have been sold. Athletes dont win because they are wearing Oakley, they win because that's what they train to do. Shawn White didn't win gold this time, maybe his Hanes were too tight, but he still wore Oakley, who knows. High end perfumes use sexy, hot stars to promote their stuff also. "Wear this and you will see what you will attract" Great!!! I bet it works for ALL women then too, ehhhhhhh. Since Lux, has been in charge you think they haven't made stuff that failed? Sure they have and its been athletic based items too. In the grand scheme of things, the X Metal line is a loved product by many and what ever Oakley designs which maybe expensive and super high end someone somewhere will compare it to an xmetal and the discussion will go on and on. I will say this, in your post you state " I think the direction oakley is going is forming partnerships with premiere brands like ferrari and the likes. By doing this, they will build their brand and further enhance their markets by reaching ferrari owners and the like. Then, further done the post you state " Sure we would all love to see something new and comparable to the x-metals, but I dont think the shareholders or the executives are super excited about starting a line that only a appeals to a miniority and not the majority. Not everyone owns a Ferarri so they are the minority in the motor world, why bother making them for a small group of people???? But Ferarri race car drivers may wear them so guess what, we gotta wear them too, when we see them in flashy promotions....

 

[greg]

I see your point about ferrari being a minority... But I think the farrari brand represents something iconic for lack of better terms. Furthermore, I think they're millions of ferrari fans out there to sell too, not exactly ferrari owners. In essence, I am saying one might not be able to afford a ferrari but they can afford the glasses that ferrari owners wear.

so am I beating a dead horse maybe, but I think a lot of people are hoping for something that is not coming.

 

[bad fishy]

so am I beating a dead horse maybe, but I think a lot of people are hoping for something that is not coming.

Like the end of people predicting what the future of Oakley holds...

 

[xmetalmaniac]

I see your point about ferrari being a minority... But I think the farrari brand represents something iconic for lack of better terms. Furthermore, I think they're millions of ferrari fans out there to sell too, not exactly ferrari owners. In essence, I am saying one might not be able to afford a ferrari but they can afford the glasses that ferrari owners wear.

so am I beating a dead horse maybe, but I think a lot of people are hoping for something that is not coming.

People that buy them may be Ferrari owners, Ferrari enthusiasts, Oakley collectors, and people who think they look awesome and will pay the $$$. Once they have their "fill", Oakley will send the unsold pairs to the vaults. Maybe the Porsche owners will have a long discussion with Lux about doing something with them. Ducati had a long run with them, so its time to move on. I would bet somewhere, there is a "Ducati owners forum" bitching about Oakley not making anymore of their cherished line.


I was hoping that the several threads that we already have talked about this, would not spawn another, but I guess that hope is not coming either.

 

[greg]

Ok @xmetalmaniac It was not my intent to post another thread about the same topic, I wanted to make a new thread with fresh information as in the 100 million dollar deal that they closed on friday. Furthermore, I wanted to spell it out to people that there will be NOOOO summer release of a line that is comparable to x-metal. I just had a conversation this week with someone from the forum who was damn sure the next big thing was coming out this summer. I felt it was necessary to point this information out so everyone can get the picture. The other threads seemed more like banter or presuppositions about oakley. I dont know how many of you studied accounting or went through a business school, but anyone with any formal business education would know that oakley is making way to much money selling plastic. Thus no need for the a new line. If you read their 4th quarter earnings report you would understand, what I am trying to say. If you want I will post their earnings report, but again without a formal finance or accounting degree it would be useless to this forum hence why I only posted the report detailing the 100 million deal.

so in my eyes this a way different thread.... however If you want I will start posting their quarterly reports and break it all down for forum members...one piece of advice, Its a good F'n time to buy stock in Luxottica

 

[RetinaBurn]

What source do you have that there will be no summer release? I think I have yet to read a post on this forum that has accurately forecasted anything that has come out of Oakley. It doesn't take a financial genius to figure out that it is cheaper to make things out of plastic than to make them out of metal, i.e. the automotive industry.

Luxottica stock is at its highest in the past two years, I don't see it going much higher. Buy it in off season, it will go down during the winter, now is not the time.

 

[greg]

@RetinaBurn I honestly dont think anything I will ever say will convince you of anything about oakley. But I will be sure PM in a 2015 when their stock is even higher!!!

 

[greg]

MARK IT Lux @ $55.59 with a $0.61 div - Market cap of 26.31B I will be back in a year!!!

 

[xmetalmaniac]

@greg I believe based on your original first post you didn't convey the message you are trying to convey now. Sure, many of us play the stock market and anyone who see's that certain stocks could go up and others could drop gives you a bit of insight when to buy or sell. Lux is just one of numerous companies that are on the rise, but remember nothing is a sure thing when trading. But again the first post says nothing about investing in Lux. Originally when the X Metal line was a thought, the engineers said it wasn't possible. In the end it was possible, and no one had anything that could be compared to it. It is, and was on a level of its own, and anything manufactured today by Oakley or anyone of Lux's line will have someone out there to do a comparison. Also there have been posts and articles talking about Lux buying up all the sunglass manufacturers in the world. They want to corner the market and become the giant in the sunglass/RX industry. There are a couple of companies that wont allow Lux to bully them, like they did with Oakley (if you dont know that story, we can fill you in ) but the issue they will eventually run into is source supply. Lux will go in the back door to cut the supply, which eventually will force their hand.

If this thread was articulated towards the stock investment side like your now trying to convey, this thread would be different. As for your quote: "I wanted to spell it out to people that there will be NOOOO summer release of a line that is comparable to x-metal. I just had a conversation this week with someone from the forum who was damn sure the next big thing was coming out this summer", is really just an insight. It may not be the summer, but anything is possible for the future. There are plans in the works for stuff and when it hits the shareholders meeting table, they will decide when to post its release. Not every design, or "slogging" will make it to production. But there is some stuff just sitting and waiting to be released to the world...