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Skullcandy, Inc. Message Board

  • charlesmoscoe charlesmoscoe Jun 10, 2013 8:24 AM Flag

    Play N Trade signs exlusive agreement with Skullcandy Gaming

    I don't know too much about Play N Trade but a quick search reveals that they have hundreds of franchises.

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    • What I meant was 'exclusive' (typed that on my phone way too early in the morning).

      Interesting deal and good exposure for Skullcandy.

      Play N Trade is definitely in the drivers seat and could have gone with anybody they wanted but chose Skullcandy Gaming (over many established brands), probably because of the solid distribution and ability to co-brand.

      This definitely will give a boost to revenues. Interesting also based on onepoint's posts that Skullcandy did not release a PR here, yet even went so far as to comment in another company's PR. This would have been a great chest pounding opportunity. Interesting that they are keeping quiet. I like that because it makes no sense so something must be up.

      I don't have exact numbers on Play N Trade, but I think they have at least 200 stores, so figure $100k in revenue per store per year from this deal (thats a few pairs of headphones a day sold per location), and that could add $20M to the top line. Totally made up numbers, but within the realm of reason.

      • 1 Reply to charlesmoscoe
      • Hey Charles, I think the "Astro Effect" on top line is underestimated and as a percent of total sales. Astro is now solidly placed at Best Buy (1000 + stores). You figure a pair a week per store gives you 50,000 units and at a store cost of 100 dollars + that's 5 million a year just from BBY add in GameStop, other channels and online and I wouldn't be surprised if the Astro unit is 25 million a year in sales or 10% of the 250 million of total sales (per analyst estimates). If you use your 20 P/E model then Atro is worth upwards of 500 million or 3.5 times current SKlUL market cap. No wonder they re going hard at it in the gaming market.

    • enough with monkeys already.

      nice agreement they signed. should expose skullcandy to many more potential users. Darling's first big move in an effort to create brand recognition. Hopefully more good things to come.

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