i had a quick look at the earnings report. Q1 is always a good opportunity for earnings surprise if management holds back on the the annual marketing expense it loads at the front end. One Year they will do it and have a massive earning beat.
There were a few issues that were suspect, but i think the major concern is margins dropping 600 basis points. Then the story about there growth coming from new lower margin categories. Have a look at the margins and profits or lack of from the leading in Gaming headphones Turtle beach (HEAR) for some insight into the Skullcandy strategy.