Fri, Nov. 6, 11:05 AM
- In addition to missing Q3 revenue estimates (while posting in-line EPS), Skullcandy (NASDAQ:SKUL) has guided for Q4 revenue to be up 5%-7% Y/Y (9% exc. forex) and for GAAP EPS of $0.38-$0.40, below a consensus for 14.1% growth and EPS of $0.43.
- On the earnings call (transcript), the headphone maker blamed the outlook on "slower-than-expected growth and distributor transitions in Europe and China," along with forex. It's decreasing its business with certain Chinese distributors in order to better focus on online/digital channels, switching to a direct distribution model in Germany, and changing distributors in the Nordics.
- Q3 details: U.S.sales rose 22% Y/Y in Q3 to $47M; international sales rose 3% (14% exc. forex) to $19.5M. Gross margin fell 430 bps Y/Y to 41% due to forex and a mix shift towards lower-margin gaming headset and wireless products. SG&A spend rose 8% to $24.5M.
- On and over-ear headphones were 50% of Q3 revenue vs. 45% a year ago, in-ear headphones 44% vs. 49%, and speakers/accessories 7% vs. 6%. Skullcandy ended Q3 with $13.9M in cash (cash balances fell due to accelerated payment programs), and no debt.
- SA author Equitable Research recently argued Skullcandy is a value play. Among other things, he cited improved product quality, solid Google Trends data, and the strength of the Astro Gaming headset unit. He's still bullish post-earnings. "Bottom line is the US core brand is on fire right now ... Now the key is back half of next year as the company goes direct in China and Germany and the Nordic region. Sales will rise and so will margins. These are isolated issues causing small weakness and it is temporary."
- Q3 results, PR
Thu, Nov. 5, 4:12 PM
Wed, Nov. 4, 5:35 PM
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Fri, Aug. 7, 5:53 PM
- In addition to slightly beating Q2 EPS estimates (while slightly missing on revenue), Skullcandy (NASDAQ:SKUL) hiked its 2015 EPS guidance to $0.41-$0.43 (above a $0.39 consensus) from $0.36-$0.40.
- Full-year revenue growth guidance of 13%-15% (in-line with a 13.8% consensus) is reiterated. Q3 guidance is for 17%-19% revenue growth and EPS of $0.07-$0.08 vs. a consensus of 13.9% growth and $0.12.
- Boosting Q2 EPS: Gross margin was 42.8%, down 220 bps Y/Y (forex and a mix shift towards gaming products are blamed) but up 230 bps Q/Q. In addition, SG&A spend rose a moderate 4% Y/Y to $23.8M.
- U.S. sales rose 5% Y/Y to $58M, while international sales rose 16% to $16.7M. Skullcandy's Astro gaming headset line was an area of strength.
- Shares jumped to $7.98 in regular trading. They went into earnings just $0.27 above a 52-week low of $7.03.
- Q2 results, PR
Thu, Aug. 6, 4:06 PM
Tue, May 5, 6:12 PM
- Though Skullcandy (NASDAQ:SKUL) beat Q1 revenue estimates and posted in-line EPS, the company guided on its CC (webcast) for Q2 EPS of $0.01-$0.03 and $0.36-$0.40, almost entirely below consensus estimates of $0.06 and $0.40.
- Sales guidance is healthier: The headphone maker expects 13%-15% 2015 revenue growth, above an 11.6% consensus.
- Gross margin declines are weighing on EPS: GM fell 600 bps Y/Y in Q1 to 40.5%. Skullcandy blames "foreign currency depreciation, increased air-freight and warehousing expense to overcome west-coast port slowdowns, and product mix shift to gaming products." Forex had a 3% impact on revenue growth.
- Cost controls boosted earnings: SG&A spend only rose 1% Y/Y to $22.4M (compares with 18% revenue growth). U.S. sales +19% to $31.1M; international sales +17% to $15.1M (+26% exc. forex).
- Shares have fallen to $9.97 AH.
- Q1 results, PR
Tue, May 5, 4:18 PM
Fri, Mar. 6, 10:50 AM
- Though it beat Q4 estimates, Skullcandy (SKUL -3.3%) guided on its CC (transcript) for Q1 revenue of $42.6M-$43.4M and EPS of -$0.12 to -$0.14, mostly below a consensus of $43.3M and -$0.08. On the other hand, full-year guidance of $272.6M-$277.5M and $0.36-$0.40 is mostly above a consensus of $259M and $0.37.
- One-timed items, forex, inventory write-offs, and a short-term air freight issue are expected to have a $0.04 impact on Q1 (and thus full-year) EPS. Forex and RadioShack's bankruptcy will impact full-year sales - RadioShack accounted for over $14M of Skullcandy's 2014 sales.
- U.S. sales rose 37% Y/Y in Q4 to $70.6M; international sales rose 27% to $26.3M. Gaming headset, Bluetooth headphone, and Wal-Mart demand were key growth drivers. Canada and China drove international growth. Over-ear products were 54% of revenue, in-ear products 40%, and speakers/accessories 6%.
- In spite of the sales growth, gross margin fell 20 bps Y/Y to 43.3% thanks to higher freight charges and a mix shift towards lower-margin gaming and wireless speaker products; Skullcandy expects a "low 44%" 2015 GM (compares with 2014's 44.6%). SG&A spend was 32.1% of revenue, down from 35.9% a year earlier.
- High expectations: Going into earnings, shares had risen 25% from the time of Skullcandy's Nov. 5 Q3 beat.
- Q4 results, PR
Thu, Mar. 5, 4:05 PM
Wed, Mar. 4, 5:35 PM
Tue, Jan. 13, 1:24 PM
- Skullcandy (NASDAQ:SKUL) CEO Hoby Darling and CFO Jason Hodell are presenting at the ICR XChange investor conference. In tandem with the presentation, the company has released slides (.pdf) providing November sales data and initial 2015 guidance.
- November retail revenue rose 21% Y/Y in a "heavy promotional environment." For the three months ending November, Skullcandy was the top U.S. brand in terms of units moved, and had the #1 and #3 positions in the U.S. earbud and $20-$100 headphone markets (per NPD). For reference, total Q3 revenue growth was 16%, and the Q4 revenue growth consensus is at 13.7%.
- Skullcandy expects "low teens" 2015 revenue growth (similar to 2014), above a consensus for 9.8% growth. International sales are expected to lead the way. Gross margin (affected by Skullcandy's entrance into new product categories) is forecast to be in the "low 44%" area, and SG&A is expected to equal 38% of revenue.
- Jefferies upgraded last week.
Nov. 5, 2014, 4:04 PM
Aug. 1, 2014, 2:22 PM
- 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
Jul. 31, 2014, 4:30 PM
May 2, 2014, 11:28 AM
- Skullcandy (SKUL +5.2%) expects Q2 revenue to be up 5%-7% Y/Y, and for GAAP EPS to be roughly breakeven; the consensus is for 5.1% revenue growth and EPS of $0.03. But the headphone maker expects full-year EPS of $0.16-$0.20, above prior guidance of $0.10-$0.14 and a consensus of $0.13. Full-year sales are still expected to grow by a mid-to-high single-digit % (consensus is at 6.7%).
- A 16% Y/Y drop in SG&A spend to $22.1M helped Q1 EPS beat estimates even though revenue was roughly in-line. A 200 bps Y/Y increase in gross margin to 46.5% also didn't hurt. Skullcandy forecasts a Q2 GM of 44.5%.
- North American sales only rose 1.3% Y/Y in Q1 to $29M, but international sales rose 19.7% to $10M. On the CC (transcript), Skullcandy noted most of its international growth came from China, Japan, Canada, and Mexico, and reiterated its goal of having international eventually account for 50% of sales.
- U.S. sales continue to be pressured by a "challenging domestic retail market." The company is counting on a new deal with Wal-Mart to provide a boost.
- Q1 results, PR
May 1, 2014, 4:13 PM
Skullcandy Inc designs, markets and distributes audio and gaming headphones, earbuds, speakers and other accessories under the Skullcandy, Astro Gaming and 2XL brands. The Company operates through its Domestic and International segment.
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