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Skullcandy, Inc. (SKUL) Message Board

  • valueinvesting123 valueinvesting123 Sep 25, 2013 4:40 PM Flag

    R.I.P Skullcandy product Lines

    Here is a list of the product lines Skullcandy is no longer producing, part of their plan to turn around the company. It seems part of Skullcandys turn round plan and plan to fix their inventory problem is to reduce the number of different model headphones they sell.

    This is very smart, they can now focus on marketing a few main product lines instead of having a bunch of different product lines which blended together. Take Beats Audio for example, they have only a few different product lines and consumers can clearly see who the market for each product line is for.

    Retired SKUL Product Lines:
    1. RIOT
    2. Heavy Medal
    3. Full Metal Jacket
    4. Cassette
    5. Lowrider
    6. Agent
    7. G.I
    8. Merge
    9. Agent

    Sentiment: Buy

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    • V,

      Where did you find that news and how recent is it ? Also how significant ? Is this the game changer that pushed the stock price out of the TR you think? thanks.

      • 1 Reply to onepoint272
      • Onepoint,

        Thank for the follow up. I do see some significance here, but I personally wouldn't warrant it enough to be a game changer or move the share price. It shows Skull is continuing to make smart moves in the right direction. Shutting down these models could possibly be making room for the new headphones they are about to release in the quickly approaching 4Q.

        It makes me think of General Motors during the recession when they trimmed down on the number of models they produced, got rid of what didn't work (Hummer, Pontiac), and just focused on what the consumer wanted.

        I was very pleased to see them shut down the Lowrider and Cassette models. As you know, the over the ear models are more expense to make and carry lower gross margins. These two models didn't really add anything to their headpone line or profit line . This should help them save on manufacturing costs, and help keep inventory down.

        If I was a private equity firm, one of the first thing I would do was trim the products which are not working and promote my best headphones. This move should make them more attractable to a buyer as well.

        My list of retried product lines came from my own research. I have been following their products very closely. I am not 100% positive on Lowrider and Cassette but I have long thought they should be the first too go, so this move makes sense to me. If they plan on launching a new line of fitness headphones it makes sense they wouldn't want to be pay to manufacture 15 different headphones.

        Sentiment: Strong Buy

 
SKUL
8.43-0.20(-2.32%)Apr 17 4:00 PMEDT

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