Skullcandy Inc. SKUL +2.48% disclosed Chief Executive Jeremy Andrus, who helped spearhead the music-headphone maker's debut on the public market in 2011, has stepped down to pursue a job at a private investment firm.
The company, which was founded in 2003, said Mr. Andrus will serve as a consultant over the next year. Rick Alden, Skullcandy's founder and former CEO, will replace Mr. Andrus on an interim basis while the company conducts a search for a permanent successor.
Shares slid 3.2% to $6.40 in after-hours trading. The stock traded at more than $23 on the first day of trading after a successful initial public offering in July 2011. Skullcandy's shares were volatile for more than a year before beginning a steady, consistent descent beginning in October last year.
Skullcandy also disclosed that it sees adjusted full-year earnings for 2012 "at the lower end" of the November view of $1 to $1.04 a share. The company is planning to report detailed results for the year on March 7, and at that time will offer guidance for 2013.
Mr. Andrus joined Skullcandy in 2005 and was appointed chief operating officer in 2007. He became president in 2008 and added the CEO title in March 2011.
The exit of Mr. Andrus comes several months after Chief Executive Mitch Edwards, who joined Skullcandy in May 2010, said he would leave the company. Mr. Edwards was replaced by Kyle Wescoat, a former executive at consumer-electronics seller Vizio.
The changes at the top of the executive suite come amid strong double-digit sales gains as the company expands abroad, launching new products such as foldable headphones, and targets video gamers. But the market for headphones is competitive, and promotions appeared to be escalated during the key holiday season.
Some observers worry competition could dent future sales growth. A consumer shift to more on-ear and over-the-ear headphones, a higher-priced market Skullcandy has had less success in, has also vexed analysts.
//Skullcandy (NASDAQ:SKUL) Roth Capital cuts the stock, down 55.44% in the past year, to Neutral from Buy with a $7 price objective amid a CEO resignation and attendant uncertainty. Shares are slumping a further 11.35% in today’s pre-market trading.//