Stopped in today at my Verizon retailer. Product layout was all reset and updated. Asked the 40 year old clerk his thoughts on earbuds. Told me he has Skullcandy as he thinks they're great for the money. Also suggested the Marley's which he thought were the most popular and good quality. Said Bose were good, but overpriced. Thought Skull was the best for the money. They didn't have one Beats product in the store and Skull was the only over the ear product they carried.
Looked at 3Q estimates and realized sales numbers are lower that 2Q actuals. Are you kidding me? This should be the easiest hurdle since becoming public. A growth company with higher price point products (over the ear), increased Astro sales and international growth while at a minimun holding their own domestically. Still worried about about margins as they do spend money.
Andrus was pretty strong on his statement last EC about the spending situation. To paraphrase: he stated that they had spent a lot of money in development and endorsements etc. He reiterated that they are starting to see a payback and that they were cutting back and that will be seen in Gross Margins.
Unless that was just fluff, I would think that they are watching their penny's a little closer.
The endorsements are costly, but we are not talking about Michael Jordan and Nike or anything. These celebs are fringe and I'm sure they are getting product as compensation as well as a small fee. Be interesting to see the numbers broke out.
Agreed. I'm in the process of getting cost, markup and inventory turnover numbers for Skul products from friends that work at Best Buy, because I don't agree with MS Jay's reasoning for his downgrade.
I agree with your comment about margins though... Steve Johnson signed just after averaging 57 yards and 1 touchdown per game this season, right before tanking the next couple weeks vs. NE and Arizona. He sold himself high. Probably cost Skul a pretty penny.
prices were increased earlier in the year on the lower end buds fron 16.99 to 19.99, now some say they are reduced to 16.99. imo this was the price when margins were 49%. asto gaming hit a homerun this q. (once again imo.) they will beat the .23c thursday. recent price action is to get weak hands out. i love the recent activity. past q's there were runups to earnings, never works that way. common sence works better than ABC'S/CHARTS