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Skullcandy, Inc. Message Board

  • deanmortensen deanmortensen Mar 11, 2013 1:12 AM Flag

    SKUL investors will need patience

    It's probably best to view the financial performance of SKUL going forward over a time period of two years, to see if management can successfully execute the reset and growth initiatives. I'm optimistic that management can execute, but time will tell. Skullcandy faces worthy competitors, and competition is intensifying in its product categories. I think future success will depend a lot on Rick Arden's vision and management skill. Investors are depending on him to navigate the company through a challenging, competitive retail environment marked by fickle consumer tastes in which compelling point-of-sale marketing will be critical to success. It appears Skullcandy has not effectively differentiated itself from other brands at the point-of-sale over the past year. At least now that Rick Arden has returned, and grabbed the steering wheel, he seems to be steering the company in the right direction. Product cachet and marketing is probably even more important than product audio performance in the fashion audio products space. I don't think Skullcandy stumbled badly in the past year, but it didn't exactly "out-cool" its competitors, either. My sense is Rick Arden has a pretty astute sense of what it will take to restore brand cachet, and to win at the store point-of-sale level. It looks to me that Skullcandy has the right people and assets, it just needed a CEO who is also an astute audio product style guru, and who understands the target customer, who tends to be trendy teens and twenty-somethings. Skullcandy has to carefully manage its transition from its original target market of the board sports community to the mass market without diluting its brand identity. It's easier said than done.

    Sentiment: Strong Buy

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