Mark Howell

Director of Global Retail

Video

D2C CAMPUS MEETING

Better Understanding of our Global Business

Confidence in the future of Oakley D2C

Get to know your FHR Team Neil Buckley Lynda Ly

1. North America2. South America3. EMEA4. Japan (North Asia)5. SEA6. Australia (South Pacific)

Oakley 2014 Global Structure

1

65

43

2

Oakley 2014 Global Presence

1. Tokyo, Japan2. Shanghai, China3. Melbourne, Australia4. Zurich, Switzerland5. Sao Paulo, Brazil6. Montreal, Canada

323,105NEED 5TH AVE

RENDERING

OAKLEY GLOBAL RETAIL •# OF EMPLOYEES

2811•TOTAL RETAIL STORES

280•INTERNATIONAL STORES

93•COUNTRY PRESENCE

19•Total Global Revenue

$403M

KEY RETAIL CHALLANGES

Higher Taxation in Brazil/Election Year/Political unrest in Venezuela

The strengthening of the US dollar against the Brazilian, Japanese and European currency.

The continuous decline of Core Brands around the world.

GLOBAL SNAPSHOT

Highlights

Global Luxury goods brands posted 4th straight year of Double Digit growth thanks to continued growth of the Chinese consumer.

Emerging Markets in South East Asia & Central America have become big destination for global Brands (Gap, Levi, Apple, Victoria Secret, Ralph Lauren)

Sportswear Retailers grew 17% last year, driven by fashion fit-wear for women and a resurgence of multi-brand sport stores.

Premium Outlet Centers continue to grow around the world.

GLOBAL SNAPSHOT

SO HOW DID WE DO IN 2014??

2014 Global Retail Results Comp

Budget• Overall: +5.6% -2.1%

O-Stores +7.6% -3.2%

Vaults +2.2% -1.4%

• Markets: Comp 2013 Comp

SEA +14.1% +9.5%

Japan +11.3% +12.1%

Brazil +6.4%+10.5%

EMEA +6.1% +8.2%

USA +4.7% +5.4%

Australia +4.0% +6.2%

UAE +2.3% +3.2%

Canada -7.1% -4.2%

Mexico -24.4% +4.1%

Elevated our Store Sales Teams (Elite, O-mater)

Foot Traffic 8% / Conversion 12.6%Comp

Conversion rate 12.1%

Solid Gains in KPI’s

8% Comp increase in SOP!!!!

2014 INTERNATIONAL DRIVERS

OAKLEY 2015??

2015 Global Retail Results Comp

Budget• Overall: +5.4% +1.2%

O-Stores +7.6% -2.2%

Vaults +2.2% -0.4%

• Markets: Comp Budget Japan +16.0% +1.9%

UAE +14.3% NA

Brazil +5.3% +3.0%

SEA +4.1% NA

Canada +3.0% +1.9%

Australia +2.7% +1.0%

Mexico +2.4% NA

EMEA +0.1% -3.1%

USA -0.7% -3.9%

FU@K YA!!!

SO WHERE HAVE WE GONE

COVENT GARDEN REMODEL

+39% IN CUSTOM EYEWEAR

FLAGSHIP OSAKA JAPAN

FLAGSHIP OSAKA JAPAN

2014 Licensee Expansion• Currently 33 Licensee Stores around the world• Opened 22 stores over the last 18 months in South East Asia Alone

• Indonesia, Philippines, Thailand• 20 of our 22 stores in South-East Asia made budget.• Continued to expand into our Cancun Mexico Region (7 stores)

• Cancun Airport & Isla Mujeres New in 2014

Video

MEXICO / INDONESIA VIDEO

2015 INTERNATIONAL DIRECTION

CONTINUED EXPANSION INTO BRAZIL & JAPAN

NEW FLAGSHIP LOCATION IN MUNICH GERMANY

HEAVY EXPANSION INTO SOUTH EAST ASIA

New Stores In Australia and Cancun Mexico

New Stores in Malaysia & Singapore

New Stores in Costa Rica, Columbia, & Peru

3RD STREET PROMONADESANTA MONICA

BASEBALL STADIUMSNY, DALLAS, SAN DIEGO, MIAMI, ANAHIEM

DISNEYLANDFLORIDA

Q/A