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.
Mon, Jan. 5, 10:16 AM
Nov. 20, 2014, 10:58 AM| 2 Comments
Sep. 17, 2014, 9:53 AM
- Piper Jaffray's Jonathan Berg assumes coverage with an Overweight rating and $9.50 price target. The firm had been bearish on the stock for most of 2013 and the first part of 2014, before pulling its Underweight rating in June.
- Skullcandy (SKUL +4.2%) was the recipient of a couple of other sell-side upgrades in August.
Aug. 20, 2014, 9:54 AM
- D.A. Davidson has upgraded Skullcandy (SKUL +3.9%) to Buy, and raised its target by $2 to $10.
- The firm thinks Skullcandy's U.S. ops are stabilizing, and is pleased with a mix shift towards higher-margin in-ear headphones.
- The move comes a week after Jefferies upgraded Skullcandy to Hold, declaring it's seeing "signs of sustained fundamental improvement." Shares are at their highest levels since April.
Aug. 12, 2014, 10:02 AM
- "We are upgrading SKUL to Hold from Underperform as we see signs of sustained fundamental improvement and a cleaner foundation from an inventory, distribution and product perspective," says Jefferies' Randal Konik. At the same time, he still thinks the headphone maker has a long road to recovery, and faces execution risk.
- Konik's target has been raised by $1 to $8. Skullcandy is less than two weeks removed from soaring in response to a Q2 EPS beat and full-year guidance hike.
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
Jun. 11, 2014, 10:53 AM
- Citing confidence in Skullcandy's (SKUL +3.1%) new headphone lineup, Piper has upgraded shares to Neutral. Its PT is at $7.50.
- SA author Charles Moscoe has been more critical of Skullcandy's product line, noting margins have come under pressure thanks to tough competition and high channel inventories. The company's North American sales (+1.3% Y/Y in Q1) remain soft, but its international sales (+19.7%) are faring better.
May. 9, 2014, 10:20 AM
- A report that Apple is set to acquire Beats Electronics for $3.2B is providing a lift to fellow headphone maker Skullcandy (SKUL +6%).
- Skullcandy's current market cap of $201.7M is a small fraction of Beats' reported acquisition price. The company's U.S. sales have been slumping due to tough competition from Beats and others, but international sales have been faring better.
- Shares rallied last week following a Q1 EPS beat and healthy guidance, but quickly gave back their gains.
May. 5, 2014, 12:04 PM
- Though the company beat EPS estimates, Skullcandy's (SKUL -6%) Q1 report suggests its "core brands sales are in significant domestic decline," writes Charles Moscoe in a Friday evening SA column.
- With U.S. sales still under pressure, Moscoe doubts the 200 bps Y/Y gross margin improvement delivered in Q1 is sustainable. He also asserts Skullcandy has only been able to maintain minimum advertised pricing for two products - Crusher and Air Raid - following many quarters of channel-stuffing.
- Nonetheless, though Moscoe considers Skullcandy shares "overpriced by a significant margin," he thinks much better shorting opportunities exist.
- Meanwhile, in a column released shortly before Friday's close, Stan Ackman notes international gross margin fell 320 bps Y/Y to 44.9%, even as North American GM rose 350 bps to 47%. He also expresses doubts about the impact of Skullcandy's Wal-Mart deal, given a lack of detail from management.
- Shares have fully given back the Friday gains they saw in response to Skullcandy's EPS beat and solid guidance.
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. 2, 2014, 9:18 AM
May. 1, 2014, 5:44 PM
Mar. 7, 2014, 12:45 PM
Mar. 7, 2014, 9:12 AM
SKUL vs. ETF Alternatives
Skullcandy, Inc. designs, markets and distributes audio and gaming headphones, ear buds, speakers and other accessories under the Skullcandy, Astro Gaming and 2XL by Skullcandy brands. It operates through the segments North America and International.
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