Skullcandy, Inc., incorporated in 2003, develops and distributes headphones and other audio accessories to retailers throughout the United States and to distributors in various countries worldwide. The Company is an audio brand that reflects the collision of the music, fashion and action sports lifestyles. The Company is engaged in the distribution of headphones in specialty retailers focused on action sports and the youth lifestyle, such as Zumiez, Tilly’s and hundreds of independent snow, skate and surf retailers. It distributes through consumer electronics, mass, sporting goods and mobile phone retailers, such as Best Buy, Target, Dick’s Sporting Goods and AT&T Wireless. Skullcandy products are also sold through its Website. As of September 30, 2010, its product offering had over 1,200 SKUs across a range of categories, including headphones as well as speaker docks, mobile device cases, apparel and other accessories. Its headphone products include in ear, on ear, over ear and gaming. In August 2011, the Company acquired Kungsbacka 57 AB.
The Company’s product line include dB Collecti; Mobility Collectio, which targets mobile channel with product features designed to work on cell phones and smartphones, such as the Apple iPhone, and 2XL, which represents traditional sports, motor sports and rock and roll music. The Company sponsors athletes, disc jockeys (DJs), musicians, artists and events within all areas of action sports and the indie and hip-hop music genres. Through its Websites, skullcandy.com and skullcandy.tv visitors can view videos, listen to music by its sponsored artists, read blog updates on events, athletes, DJs, musicians and artists, and shop for its products. In August 2010, the Company entered into a three-year contract with UPS Supply Chain Solutions, a third party supply chain provider, for use of their distribution facility in Auburn, Washington.
The Company competes with Sony, JVC, Bose, Beats by Dr. Dre, Nixon, adidas, Nike, Sennheiser and Phillips.
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