Skullcandy's prediction of a sales decline in the current quarter would end the company's history of reporting double-digit sales gains quarter after quarter since going public in 2011.
Overall, Skullcandy reported a quarterly profit of $11.5 million, or 41 cents a share, down from $12.3 million, or 44 cents a share, a year earlier. Excluding legal-related charges and an expense in the latest quarter tied to the bankruptcy filing of a major retail customer in Europe, adjusted profit was flat at 47 cents.
Net sales jumped 21% to $101 million. North America sales were up 12%, while the top-line abroad soared 90%.
Analysts expected a profit 48 cents a share on revenue of $99 million.
Gross margin dropped to 44.7% from 49.9%, hurt by higher sales of lower-margin products and discounting.