After market close, shares had added 11.7% to $7.43.
The headphones maker reported fourth-quarter net income of 13 cents a share, 4 cents higher than analysts surveyed by Thomson Reuters had forecast.
Revenue of $72.25 million was $370,000 higher than analysts' expectations.
Sales decreased 28.4% year over year, though this was consistent with the company's strategy to "significantly cut sales to its off-price channel, aggressively enforce its MAP pricing online, and control inventory levels with its customers."
"2013 was a year of tremendous positive change geared toward executing our turnaround strategy," said CEO Hoby Darling in a statement. "The year was capped off by a strong fourth quarter performance focused on reinforcing our brand ethos and positioned the business for long-term success."
TheStreet Ratings team rates SKULLCANDY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SKULLCANDY INC (SKUL) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share."
- You can view the full analysis from the report here: SKUL Ratings Report