Boston, MA 03/11/2014 (wallstreetpr) – Skullcandy Inc (NASDAQ:SKUL) is beginning to attract positive stories around it. From encouraging quarter results to strong outlook and a market that is projected for growth, the headphone maker may just be getting right there to repay its initial public offering investors. Since the company went public, its shares have been trading just about a quarter of the IPO price and just recently managed to rally up to almost half the IPO price.
The positive stories around Skullcandy Inc (NASDAQ:SKUL) can be seen in many areas from encouraging quarter results to strong outlook and a market that is poised for growth. Currently what ranks high on the priority list is the growth of annual revenue which declined last year.
The positive fourth quarter which Skullcandy Inc (NASDAQ:SKUL) released late last week were responsible for the stock’s sharp rise Friday and the same positive trend was replayed Monday. Shares were up more than 8.3 percent to $10 at the end of the last session.
The right place at the right time
While the headphone sales in the U.S. showed growth slowdown last year, a segment of the market is actually going up and that is earbuds. The overall sale of headphones in 2013 was up 10 percent, yet sales earbud sales account for 51 percent of the overall headphone sales last year, suggesting growth from sales witnessed in 2012.
That being the case, Skullcandy Inc (NASDAQ:SKUL) has announced launch of its earbuds later this year. The company is also set to launch more earphones which can connect wirelessly with Bluetooth as well as smart-wearable like fitness bands.
What is clear now is that Skullcandy Inc (NASDAQ:SKUL) has seen an emerging opportunity and it is first circling it for its own growth. The company can fix the fallout in the overall earphone market by penetrating the niche markets of earbuds. Moreover, the emerging market of smart-wearable as fitness bands can end up boosting sales for the company, hoping that the consumers won’t move into a different thing altogether given that the headphone business can sometimes undergo big changes in a short time.