MOSS ADAMS CAPITAL: Apparel and foowear market monitor highlights notable deals, stock prices and results.
Details on Industry Insight.
Skullcandy’s first quarter sales surged 65.9% to $36 million, according to documents the company filed with the SEC.
Net income increased 237.5%.
The sales increase was driven by a $4.9 million increase in international sales and a $4 million increase in sales to large customers such as Best Buy and Target, and increased sales to existing retailers. Online sales grew by $2 million during the period.
Best Buy and Target each accounted for more than 10% of total company sales in the first quarter and in 2010, the company said in filings.
Domestic sales increased 50.3% to $28.4 million during the quarter compared to the same period last year. Domestic sales accounted for 78.9% of sales during Q1 2011.
International sales, namely to Europe and Canada, rose 175% to $7.6 million. Skullcandy has resolved a dispute with its European distributor, 57 North, which led to the increase in sales. That distribution agreement ends in 2013.
SG&A rose 89.5% to $14.4 million due to increased payroll to support growth, and an increase in marketing spending on in-store displays and advertising, and increased spending for trade shows and events.
As a percentage of net sales, SG&A reached 40% vs. 35% in the same period last year.
Net income totaled $1.1 million during the period compared with a net loss of $801,000 in Q1 2010.
EBITDA more than doubled to $4.2 million from $2 million during the same period last year.
Skullcandy is in the process of becoming a publicly traded company and now files financial results with the SEC.