Skullcandy Inc Case Study
“SKULLCANDY”
Trademark Skullcandy Inc.
“Skullcandy”
INTRODUCTION
Skullcandy was founded in 2003 by Rick Alden. Alden was the creator of several successful action companies and one day while he was on a chairlift listening to a portable music player the thought of the idea to start a new company. That new company was soon to be called Skullcandy. “Skullcandy is a leading audio brand that reflects the collision of the music, fashion and action sports lifestyles. Our brand and distinctive logo symbolizes youth and rebellion, and embodies our motto, “Every revolution needs a soundtrack.” Founded on innovation, we fuse bold color schemes, loud patterns, unique materials and creative packaging with the latest audio technologies and innovative functionalities to create a new and unique product. Our headphones feature our distinctive Skullcandy sound and leading-edge design. We offer a wide array of styles and price points and are expanding our brand into complementary audio products and accessories.” (
Skullcandy’s public headquarters is based out of Parkcity, Utah. Their headquarters mirrors a gritty rock-n-roll vibe that goes along with the Skullcandy brand. The office has a half pipe and mini ramp for its employees that want to take a quick skate break during work, and on days where they get a lot of snow they have a “Powder Day Policy” that prohibits work until after 11 am letting their employees go skiing or snowboarding before coming into work. They also offer their employees typical compensation packages that includes education assistance. (
Skullcandy went public with their IPO on July 19, 2011. Their initial offer price was $20 a share and offered 9.4 million shares. The following are charts with prior performance measures for Skullcandy:
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Skullcandy’s net income for 2012 was $25,879, but dropped in 2013 to -3,036. Their current return on equity is at -2.20% from a high in March 2011 of 103.8%. Skullcandy did beat earnings reports for the last quarter of 2013, but net income did drop dramatically from 2012 to 2013.
Mission Statement:
“A vision born on a chairlift, tested in the sand, proven on the urban streets. Skullcandy