My personal channel checks have made me nervous. Every couple of weeks I check out a few stores for what Skullcandy items they carry. For the past couple of months I noticed that fewer products were available while I saw new products from different competitors each time. I was somewhat uncomfortable with the trend. I haven't done a check in about a month.
This morning I saw the news that the CFO is departing. The news is written so to put a shine on this turd. I decided to stop by the mall on the way to work to see what's happening. My local Apple store now has _zero_ Skullcandy products. That is a loss of a huge customer. What about other Apple stores? Zumiez which previously had a fairly full Skullcandy display prominently in the store now has the display mostly empty and off to the side. Zumiez now carries Beats for a couple of months, but I think that they used to be Skullcandy only. A music and video store (the name was some acronym that I forgot) has all Skullcandy products marked down now. The video game store still has the Skullcandy and Astro boxes displayed as before.
I am afraid that the CFO is leaving because this company is falling apart. The competition seems to be growing daily. I think that the company is consolidating to save money because they have to given the current trend. I think that they promoted Sam to keep him because he may have wanted to bail as well. They have to pay up to keep their best man.
I have sold out. I am surprised that this stock is not significantly lower. I think that the company has done a fine job in crafting a news release to make bad new sound good, which was good for me so that I did not get damaged too much.
Hopefully, I am wrong for the sake of the longs, but the CFO departure, the increased competition, the lower sales, the pathetic channel check all outweighed the hope that the new CEO could turn this ship around.