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Face/Off  Sneaker attack By Daniel Roth IT WAS ONCE RARE to see a picture of Nike's Phil Knight without Oakley shades on. Knight liked the sunglasses so much he once tried to buy the company. So much, in fact, that he decided in 1996 to sell his own version. Oakley founder and frequent litigator Jim Jannard wasn't flattered. Jannard sued Nike for patent infringement; Nike sued back over an ad showing Michael Jordan in an Oakley beret. Oakley pulled the ad, but upped its attack: This year Jannard is launching an Oakley line of athletic shoes. And he's making them in the U.S., a dig at Nike's sweatshop woes. Can Jannard give Knight a run? Forbes sizes up the two Forbes Four Hundred members. OAKLEY Jim Jannard Owns 53% of company Net worth; Forbes 400 ranking $940 million; 148 Fiscal 1997 financials $19.6 million net; $194 million sales Strength Popularity with the "extreme" set should give Oakley shoes instant name cachet; cutthroat lawyers should give Nike continuous headaches over its sunglasses. Weakness The footwear market's been weak for a year. Cautious retailers may be hesitant to give shelf space to a newcomer. What they're saying "He's a tenacious and worthy competitor. However, I have a hundred problems to solve; he has a thousand." -NIKE- Philip Knight Owns 33% of company Net worth; Forbes 400 ranking $4.1 billion; 17 Fiscal 1997 financials $796 million net; $9 billion sales Strength How big is Nike? It spent five times more on advertising last year than Oakley's total gross. Also: deflation in Asia, where Nike does most of its manufacturing, spells lower costs. Weakness Adidas is making a strong run in the U.S., and Asian revenues will suffer from the crisis there. What they're saying On the patent suit: "It isn't anything we're losing sleep over. I think we make him nervous." Stars who wear both Basketball players Michael Jordan, Reggie Miller and Charles "Bo" Outlaw; baseball's Cal Ripken and Wade Boggs; cycling's Lance Armstrong. What's the deal with Jordan? He and Nike are practically synonymous. But Jordan is also an Oakley endorser, stockholder and board member. To keep Jordan out of trouble, Oakley set up a structure forbidding footwear issues from being discussed in front of him. Prognosis Nike has defined the sports shoe market and has bloodied its big competitors. Ego aside, Jannard might be better off hunting elsewhere. | back to top | Read more:   By Daniel Roth   Management, Strategies, Trends   Face/Off   From March 9, 1998 Issue March 09, 1998 Table of Contents: On The Cover: -LBO madness -Diller's next course Management, Strategies, Trends: Industry -Rolling the dice High Tech -Geeks go gaga Issues -Solar sham Marketing -Riding El Niņo Companies -The happy dealster Face/Off -Sneaker attack Internet -Sons of AOL -Thomas Edison, reborn -Xerox and judo -Tales of two cities Up & Comers -"This is your company" -Pushing up profits Starting Your Own Business -Babes in moneyland -The greed screed -Seasonal suckers -Web grab? -Creative giving Dave's way -Waste not, want more -Boom, bust, boom -A well-rounded life -Global game -The oil domino -The big box and rock Computers/Communications -Testing Teligent International: -Reboot, reboot -Chinese Legend -Luck of the Irish -Shipping's scrapyard -Hong Kong calm Charticle: -Balancing the books Law & Issues: -"Commerce Clause" -Dr. Crusader Technology: Web Solver -Who's got E-muscle? Biotech -Germ warfare Staying Healthy -Blood testers Departments: -Side Lines -Follow-Through -On My Mind -Readers Say -Fact and Comment -Other Comments -Commentary -Transparent Eyeball -On-Line Pulse -Flashbacks -Thoughts Columnists: Point of View -Is the ruble next? Management Strategies -Bogus bonuses Insights -AIDS and Agouron Parameters -Friendly warfare Money & Investments: Taxing Matters -Long live King Lear The Funds -REIT on the money -If the bedbug bites -A dose of profit -Aiming low -The Forbes/Barra Wall Street Review -Streetwalker Statistical Spotlight -Steroid stocks -Defending annuities Investment Columnists: Fixed Income Strategy -Don't reach Portfolio Strategy -Report card Stock Trends -The bull's hidden strength Market Trends -The hit parade The Forbes Life: Outdoors -Life in Deadwood Collectors -Dusting off Dixie Re-Viewing -Miller time The Arts -Bach with banjos Life Style -Dandy is dandy Going, Going, Gone -Haute honky-tonk Subscribe to Forbes  ·  Letters to the Editor Forbes Front Page  ·  Forbes Magazine  ·  The Toolbox Sitemap  ·  Help  ·  Search  ·  Webmaster © 1998 Forbes Inc. Terms, Conditions and Notices