Stopped in last night at BB to do some Christmas shopping. Immediately upon entering..BAM...a huge Beats display front and center. You could not go in to the store without seeing and walking past it. I eventually found Skullcandy on the backside and saw they had the Crusher out for testing. I had not worn them and was excited to test it, but its display was not working. Its looks and construction are nothing special and I would never buy it without testing it . Only good thing about the Skullcandy headphones were the heavy discounts. Mixmaster for 199 and aviators for 80....quite the bargain. Sales guys did say Skullcandy remains popular and they all rolled their eyes about Beats. What a great marketing job they have done cuz no one talks positive about the sound and quality.
Back to the gaming section where the sales guys raved about Astro headsets. I saw the Playr 1 on sale for 129....a $50 discount and bought one for my son. What a deal! But not so much for us shareholders. I'm guessing BB has no lost love for Skullcandy at this time with all their inventory they are trying to unload.
I still believe in the company, but they have a ways to go to right the ship.
Chaz, it's been a train wreck at BBY (1200 stores or "doors") since last holiday season. I totally agree as my own channel checks there have been mostly deep discounted inventory. One thing I noted recently was BBY seem to be shifting to a Sony earbud inventory. Skullcandy has not updated any displays there for over a year. I did note a cheap cardboard Skullcandy isle display added recently, earbuds only. Pretty sad, but Hoby has laid it out on the table that they are still working off old inventory. He (Hoby) noted RSH (over 7000 doors) problems as well. I do see some progress and continuity at Target (2000 doors).
These are the "big box retailers". They are shifting to more specialty stores which are hard to track and of course their version of organic growth (events, social media).
Part of the controversial "margin decline as they get into under 99 dollar products" I suspect is continued deep discounting to get rid of old inventory, gaming and the Air Raid as well as the continued increased costs related to upgrading their design quality (which they have made leaps and bounds over the last year and will continue). They will recoup some of these costs as the warranty claims (one of the best warranty's in the industry) decrease (or these theory goes).
Once the excess inventory is gone and the new streamlined product line is in place, they will get bought out. Mark my words!!! There are some theories on the suitor, I suspect the rumor mill will start heating up post Q2 next year or perhaps sooner....