Total Return: -74%
The first wannabe-cool company that comes to mind: Skullcandy (SKUL). The headphone-maker that calls itself a unique collision of music, fashion and action sports hit the market in the summer of 2011.
It has been in a race to the bottom ever since.
Skullcandy has been suffering from slipping sales, and its earnings are expected to decline 87% this fiscal year. In the most recent quarter, it took a brutal loss of 27 cents per share vs. a profit in the year-ago period … and all that woe has translated to a 32% slide for SKUL year-to-date.
One big issue for the brand: a huge pile of competitors. Apple (AAPL) makes earbuds, as does Dr. Dre, Bose, Sony (SNE) and more. Plus, the company just seems to be trying a little too hard between its skull-shaped logo, celebrity “brand ambassadors,” bright colors, eye-catching patterns and custom designs.
It seems like there’s cool, and then there’s … well, too cool. The latter is a recipe for a fad, not a successful company.