Lower Gross Margin ( I expect this will continue as gaming continues to take greater mix)
Increase in Opex (now 47% of sales, they need to make some tough cuts)
Decline in International sales (15.9% decline, Brand is not resonating WW)
Inventory remains high and is now equivalent to quarterly sales revenues ($50M)
Lower sell in at key customer ( brand is struggling with fragmented market)
Still no relevant product in the high growth Wireless category (how out of touch are they)
What happened in the market: (NPD June)
Headphone category growth slowing
Beats & Bose are the only major headphone vendors growing
Yurbuds & Jaybird taking share in the Earbud sport segment (100% Y/Y growth)
I don't think the brand is working at all and i think there changes are too slow. Looks like a long road of declining revenues and relevance.
it's about time they bought back shares or Hoby bought some shares.