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PARK CITY, Utah, May 2, 2013 (GLOBE NEWSWIRE) -- Skullcandy, Inc. (Nasdaq:SKUL) today announced financial results for the first quarter ended March 31, 2013.
First Quarter Results
Net sales were $37.1 million
Net loss was ($0.25) per diluted share
Non-GAAP adjusted net loss was ($0.23) per diluted share
"While our first quarter results were in line with expectations, there is still much work to be done in order to improve on our recent performance," stated Hoby Darling, President and CEO. "Skullcandy rapidly expanded its share of the headphone category the past few years driven in large part by a disruptive market position and strong brand equity within action sports. We now need to broaden our growth pillars in order to evolve as an audio leader and expand the category. Our go-forward plans will focus on developing more technology driven, consumer innovative products, creating deeper connections with consumers through authentic and clear brand messages, and winning at the point of sale. Through diligent focus on these key areas, combined with establishing a balanced distribution platform, we believe we can achieve our near-term operating goals while setting the Company up to deliver consistent sales and earnings growth over the long-term."
Net sales in the first quarter of 2013 decreased 30.4% to $37.1 million from $53.3 million in the same quarter of the prior year. North America net sales decreased 37.9% to $28.7 million from $46.1 million in the same quarter of the prior year. The prior year's first quarter was aided by lower retail customer inventory coming out of the holiday season and a packaging change that led to higher sales, creating a challenging year over year quarterly comparison. Further, the Company chose to scale back its sales to the highly discounted off-price channel by approximately 67%. This decrease was partially offset by an increase in gaming net sales of 43.8%. International net sales increased 17.5% to $8.4 million from $7.1 million in the same quarter of the prior year. Included in the North America segment in Q1 2013 and Q1 2012 are net sales of $2.1 million and $3.4 million, respectively, that were sold from North America to customers with a "ship to" location outside of North America. Adjusting these sales into the international segment, international net sales are flat year over year.