With a Q2 EPS beat in tow, Skullcandy (NASDAQ:SKUL) is hiking its 2014 EPS guidance range by $0.06 to $0.22-$0.26; that's above a $0.19 consensus.
Guidance for mid-to-high single-digit full-year revenue growth is reiterated; consensus is for 7.3% growth. Q3 guidance is for 7%-9% revenue growth and EPS of $0.02-$0.05 vs. a consensus of 7.8% growth and $0.06.
Q2 gross margin was 45%, +10 bps Y/Y and above guidance of 44.5%. On the CC (transcript), Skullcandy forecast a Q3 GM of 45%, and has hiked its full-year GM guidance by 20 bps to 44.7%.
Also helping Q2 EPS: SG&A spend fell to 43% of revenue from 47% a year ago. However, full-year SG&A guidance is unchanged, due to plans to reinvest the Q2 savings.
U.S. sales rose 6% Y/Y to $39.5M, and international sales 6.1% to $14.4M (strong Canadian sales). In-ear headphones made up 56% of revenue (up from 53% a year ago), other headphones 40%, and Bluetooth speakers and accessories 4%.
Q2 results, PR