Park City's Skullcandy reports second-quarter loss
Headphones and audio accessories manufacturer, Skullcandy, reported a nearly 30 percent drop in net sales in the second quarter as the Park City-based company restructures its management team.
The company, which produces branded headphones for mobile devices as well as activewear, posted a net sales loss of 29.9 percent to $50.8 million compared to the same time last year, according to its financial report. North American net sales decreased 39.1 percent to $39 million from $64.1 million the same quarter last year. Meanwhile, international net sales increased 40.6 percent to $11.8 million compared to last year's second quarter.
"The second quarter was about taking the initial steps toward getting our house in order to drive positive, long-term transformation at Skullcandy," Hoby Darling, Skullcandy's CEO and president, said in a statement.
In June, the company announced it was closing down its San Clemente, Calif., office and moving most of the 30 employees there to Park City. The office housed its marketing, creative and business development and legal departments.
"With our product, marketing and sales teams now consolidated in Park City we are in a much better position to build momentum and establish Skullcandy as the world's leading lifestyle and performance audio company," Darling said.
The company also announced that Sam Paschel, the executive vice president of product development and merchandising, had been named to the new position of chief commercial officer. He will be responsible for product teams.
The company's chief financial officer, Kyle Wescoat, also resigned to "pursue opportunities closer to his home in Southern California," according to an earlier statement.
Skullcandy's net sales in the first quarter also decreased 30.4 percent, to $37.1 million. Skullcandy's stock has experienced steep declines in the last year when it was at a high of $16.66 per share on Aug. 17, 2012. On Friday, the company's shares were trading at $5.24 at the market's close.