The headphones maker has been attempting to rebrand its product portfolio as one of prestige by cutting sales to off-price retailers which heavily discount, aggressively enforcing its suggested retail prices online, and strictly controlling inventory levels to prevent surplus stock.
Its executive team also had an overhaul with its CEO and President Hoby Darling only at the helm since last May and its CFO Jason Hodell with the company since October.
The headphones maker posted financials for its year-ending quarter after the bell Thursday and it looks as though its turnaround attempts have taken root.
In the three months to December, the Park City, Utah-based business reported net profit of 13 cents a share, compared to analysts' estimates of 9 cents a share, according to Thomson Reuters.
Revenue of $72.25 million exceeded consensus of $71.88 million. Though this was 28% lower year on year, decreased sales were in line with previous guidance as the company reined in the outlets it supplies.
By market close Friday, shares were up 24.2% to $9.23.
Trading volume of 13.3 million was more than 50 times its three-month daily average.
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TheStreet Ratings team rates SKULLCANDY INC as a Sell with a ratings score of D+. The team has this to say about their recommendation: