Skullcandy Warns On Sales, Cites Disappointing Holiday Results

Skullcandy Inc SKUL announced Monday afternoon its fourth-quarter sales are now expected to be flat on a year-over-year basis.

The company said the sales shortfall was attributable "disappointing holiday results, combined with the impact on gross margin from product mix shift driven by a higher percentage of gaming headset sales during the holiday season."

Skullcandy now sees fourth-quarter sales up just about 2 percent, compared to previous sales growth guidance of 5-7 percent.

The quarterly GAAP EPS outlook was slashed from $0.38-$0.40 to a new range of $0.20-$0.22. On a pro-forma basis, earnings are expected to be in the $0.25-$0.27 per share range, versus the analyst consensus estimate of $0.37.

Skullcandy said it will release fourth-quarter and fiscal year 2015 results in March, at which time the company will also offer an initial look into 2016.