I was in Future Shop which is in Canada and owned by Best Buy. I was shocked at the competition in this space, not too mention Skull is not in Future Shop but is in Best Buy. But yes the competion is unreal, i was going to write down all the names but i would say there were over 10 that had their own advertising stations with product below, also other companies coming out with colours, so not sure how will play out.
I still revert back to management, when many upper managment were leaving, you have to ask the question why, then the CEO leaves, no one leaves a potential fortune, with the CEO leaving that is just another silent message stating the obvious.
No doubt competition exists. But don't you make the same realizations when you walk into Sports Authority to purchase a pair of tennis shoes? Many choices and lots of compeition, but the well branded companies remain (Nike, addidas,) and consumers are willing to pay and choose a company because of its brand. Not saying Skul is a Nike, but that is long term goal of Skul.
That reputation takes time and I believe Skul is making progress and that's the value I see in them as an investor.
I feel strongly the CEO did leave his potential fortune, but was strongly encouraged to seek other opportunities outside the company:)
Low barriers to entry leads to high competition, one needs to find their target market and use the classic 4 Ps of marketing to win and force others out. Can Skul do this? They have seemed to thus far, longs would say yes.
First of all, on the website it says they have SIX different models IN STORES. I will not argue, the space is very competitive. What separates skullcandy is the branding and cult like following. Xtreme sports, hipsters, skaters etc.. Also, Their website is incredible; Nearly 2M facebook likes. None of Your competitors at Future Shop with the exception of Beats are in the ballpark. If this stock was at $11 I wouldnt be an investor. I have a target of 9.50 to 10 based strictly on the numbers and the marketing. If you want to make 50% on ur $ before Sept 1, get in before 6.85.