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Skullcandy, Inc. (SKUL) Message Board

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  • coffeenote20 coffeenote20 Feb 9, 2013 9:24 PM Flag

    Beats discounting

    I agree that Skullcandy still stays true with the sports lifestyle crowd. Was just boarding at Copper Mtn. CO. and they have very nice Skullcandy displays at the base of the Mtn. board shops there. Even spotted multiple boarders wearing - Skullcandy over the ear's - over their beanies.

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    • Coffee. Yeah, there is little doubt they dominate the skate/ski/snowboard/motocross and extreme sport crowd.

      Andrus even stated in his exit interview a with the Wall Street Journal that was their target market and offered "Authenticity" to the brand. Focused on small retail shops.

      I think going forward the question is going to be what is their growth strategy as they clearly (IMO) do well in their target demographics.

      It's a 1 Billion Dollar market according to the WSJ with Beats dominating at 51% share, That would put SKUL at 30% (Based on 300 million sales). The only other one I can break out is Koss with 35 million or 3.5%. That would leve 15% for all other (Bose, Sony, Monster, Soul, Gummies, Logitech, Apple and a dozen more). I think the worldwide market is much more then 1 Billion and Beats doesn't own 51%....

      I believe that they will be tapping the gaming market, gaming sets, controllers, partnerships in action games. They will try to expand into the apparel market more as well.

      I'm itching to hear what Alden has to say going forward!

      Sentiment: Strong Buy

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