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PARK CITY, Utah, May 1, 2014 (GLOBE NEWSWIRE) -- Skullcandy, Inc. (Nasdaq:SKUL) today announced financial results for the first quarter ended March 31, 2014.
First Quarter Results
Net sales: $39.1 million vs. $37.1 million
Gross margin: 46.5% vs. 44.5%
Selling, general and administrative expense: $22.1 million vs. $26.3 million
Net loss per diluted share: $(0.12) vs. $(0.25)
"The focused execution of our five pillar growth strategy led to a solid start to 2014," said Hoby Darling, President and Chief Executive Officer of Skullcandy. "The first quarter marked our return to revenue growth as both our domestic and international markets posted positive gains. Equally important, gross margins stabilized and we were able to leverage operating expenses while continuing to invest in key long-term growth drivers such as demand creation, innovation and talent. As a result, our bottom line performance improved dramatically from a year ago, putting us on course to exceed our original profit targets for the full year. We are encouraged by our current momentum and believe our commitment to culture and operational excellence is providing our teams the foundation to continue building remarkable products and developing deep, authentic connections with our consumer."
Net sales in the first quarter of 2014 increased 5.5% to $39.1 million from $37.1 million in the same quarter of the prior year. North America net sales increased 1.3% to $29.0 million from $28.7 million in the same quarter of the prior year. International net sales increased 19.7% to $10.0 million from $8.4 million in the same quarter of the prior year. Included in the North America segment in first quarter 2014 and first quarter 2013 are net sales of $0.6 million and $2.1 million, respectively, of products that were sold from the United States to customers with a "ship to" location outside of North America. These sales represented an increase of approximately 1.2% to the International Segment, and an increase of approximately 7.2% to the North American segment compared to the same quarter in the prior year.