Skullcandy, Inc. (SKUL) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2011

Exhibit 99.1

Skullcandy Reports Record Fourth Quarter and 2011 Financial Results

PARK CITY, UTAH – February 22, 2012

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Jeremy Andrus, Skullcandy’s President and CEO stated, “We are pleased with our fourth quarter results and momentum heading into 2012. We ended the best year in Skullcandy’s history with strong net sales growth and sequential margin improvement. We made key acquisitions during the year and continue to make investments in critical areas of the business to support long-term growth, including product development, international expansion, interactive media and point of sale merchandising.”

Mr. Andrus continued, “We are very excited about the evolution of our products and brand going into 2012. We continue to evolve the Skullcandy brand around aspirational design and audio performance. New headphone models will feature refined styling and our new proprietary sound profile dubbed Supreme Sound. We unveiled the brand’s updated product collection, packaging, and positioning at nine tradeshows around the world over the past two months, and the response has been extremely positive. More than ever before, Skullcandy is uniquely positioned in the market as a true performance lifestyle audio brand.”

Fourth Quarter Results

Net sales in the fourth quarter of 2011 increased 29.0% to $83.4 million from $64.6 million in the same quarter of the prior year. In the fourth quarter of 2011, domestic net sales increased 27.0% to $59.1 million, international net sales increased 18.8% to $15.3 million, and online net sales increased 73.0% to $9.0 million.

Gross profit in the fourth quarter of 2011 increased 15.0% to $41.6 million from $36.2 million in the same quarter of the prior year. Gross margin was 49.9% in the fourth quarter of 2011 compared to 47.5% in the third