Exhibit 99.1

Skullcandy Announces Strong Third Quarter 2012 Financial Results

PARK CITY, UTAH – November 1, 2012 – Skullcandy, Inc. (NASDAQ: SKUL) today announced financial results for the third quarter ended September 30, 2012.

Third Quarter Highlights (Q3 2012 vs. Q3 2011)

Jeremy Andrus, Skullcandy’s President and CEO stated, “We are pleased with our third quarter results, in which operating income increased over 29% and was driven by solid sales growth, margin expansion and expense leverage. With the successful launch of a new line of Astro Gaming and Skullcandy gaming headsets, we continue to broaden our customer base and diversify our business. Early feedback on our new gaming headsets has been overwhelmingly positive and we believe this is a meaningful new growth opportunity for Skullcandy. Other exciting upcoming new product launches include two premium on-ear and over-ear styles, Navigator and Crusher, which combine cutting-edge performance and design with Skullcandy’s proprietary Supreme Sound.”

Third Quarter Results

Net sales in the third quarter of 2012 increased 17.1% to $71.0 million from $60.6 million in the same quarter of the prior year. The increase was primarily driven by increased Astro Gaming sales of $4.7 million and an increase in international sales.

Gross profit in the third quarter of 2012 increased 18.5% to $34.1 million from $28.8 million in the same quarter of the prior year. Gross profit as a percentage of net sales, or gross margin, was 48.0% in the third quarter of 2012 compared to 47.5% in the third quarter of 2011.

Selling, general and administrative (SG&A) expenses in the third quarter 2012 increased 14.2% to $23.5 million from $20.6 million in the same quarter of the prior year. As a percentage of net sales, selling, general and administrative expenses decreased to 33.1% from 33.9% in the same quarter of the prior year.

Income from operations increased 29.1% to $10.6 million from $8.2 million in the same quarter of the prior year. Income from operations as a percentage of net sales increased to 15.0% from 13.6% in the same quarter of the prior year.

Net income attributable to Skullcandy, Inc. in the third quarter of 2012 was $6.5 million, or $0.23 per diluted share, based on 28.1 million diluted weighted average common shares outstanding. Net income attributable to Skullcandy, Inc. in the same quarter of the prior year was $1.0 million, or $0.04 per diluted share, based on

26.3 million diluted weighted average common shares outstanding. Excluding the one-time expenses related to a capital transaction in 2008, adjusted net income in the third quarter of 2011 was $4.5 million, or $0.17 per diluted share based on 26.3 million diluted weighted average common shares outstanding. For a reconciliation of adjusted net income to net income, see the accompanying tables at the end of this release.

Balance Sheet Highlights

As of September 30, 2012, cash and cash equivalents totaled $1.9 million compared to $14.9 million at September 30, 2011 and the Company had no long-term debt. As of September 30, 2012, the Company had $22.9 million of availability under its credit facility. Accounts receivable and inventory were $60.0 million and $55.4 million, respectively, at September 30, 2012. While accounts receivable is up significantly on a year-over-year basis, last year’s third quarter accounts receivable included only approximately one month of Europe direct sales, and is, therefore, non-comparable. For the nine month period ended September 30, 2012, working capital increased $16.3 million to $88.4 million, or 22.5%, which is less than net sales growth of 32.0% for the same period.

Outlook

The Company is tightening its net sales outlook for the full year 2012 to $290-$300 million from a previous outlook of $280-$300 million. A mix shift toward higher-priced, lower margin products and cautiousness regarding the retail environment in Europe and the escalating U.S. promotional environment heading into the important holiday season creates less visibility around gross margin and operating expenses. As a result, the Company is revising its adjusted fully diluted earnings per share outlook for 2012 to $1.00-$1.04 from a previous outlook of $1.10-$1.20. This adjusted earnings per share outlook excludes $0.4 million of after-tax expenses related to the Monster litigation in the first quarter and assumes an effective tax rate of approximately 36.5% and diluted weighted average common shares outstanding of approximately 28.3 million.

Call Information

A conference call to discuss the third quarter 2012 results is scheduled for today, November 1, 2012, at 4:30 PM Eastern Time/2:30 PM Mountain Time. A broadcast of the call will be available on the Company’s website, www.skullcandy.com. Analysts and investors can participate in the live call by dialing (800) 263-8506 or (719) 457-2662. In addition, a replay of the call will be available shortly after the conclusion of the call and remain available through November 8, 2012. To access the telephone replay, listeners should dial (877) 870-5176 or (858) 384-5517 and enter ID #8814475.

About Skullcandy, Inc.

Skullcandy is a global designer, marketer and distributor of performance audio and gaming headphones and other accessory related products under the Skullcandy, Astro Gaming and 2XL by Skullcandy brands. Skullcandy became one of the world’s most distinct audio brands by bringing color, character and performance to an otherwise monochromatic space; helping to revolutionize the audio arena by introducing headphones, earbuds and other audio and wireless lifestyle products that possess unmistakable style and exceptional performance. The Company’s products are sold and distributed through a variety of channels in the U.S. and approximately 80 countries worldwide. Visit skullcandy.com, or join us at facebook.com/skullcandy or on Twitter @skullcandy.

Forward-Looking Statements

Certain statements in this press release and oral statements made from time to time by representatives of the Company are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements regarding the Company’s guidance, outlook, future financial and operating results and any other statements about the Company’s future expectations, beliefs or prospects expressed by management are forward-looking statements. These forward-looking statements are based on management’s current expectations and beliefs, but they involve a number of risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to, the Company’s ability to extend the recognition and reputation of its brand, to continue to develop innovative and popular products, to respond to changes in consumer preferences, to grow its international business, to implement new sourcing initiatives and other factors that are detailed in the Company’s annual report on Form 10-K for its most recent fiscal year and in other reports the Company files with the SEC,

including the Risk Factors contained in the Company’s annual and other reports, which are available at www.sec.gov. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Media:

Alecia Pulman/Janet Reinhardt

203-682-8200

Alecia.Pulman@icrinc.com

Investors:

John Rouleau

203-682-8342

John.Rouleau@icrinc.com

-Financial Tables Follow-

SKULLCANDY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands of dollars, except share and per share information)

(unaudited)

SKULLCANDY, INC.

CONSDENSED CONSOLIDATED BALANCE SHEETS

(in thousands of dollars)

(unaudited)

SKULLCANDY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of dollars)

(unaudited)

SKULLCANDY, INC.

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

(in thousands of dollars)

(unaudited)

Non-GAAP Measures

Adjusted net income, for the periods presented, represents net income excluding expenses associated with legal expenses associated with the Monster litigation and expenses associated with the second and third contingent payments pursuant to the securities purchase and redemption agreement. These expenses relate to one-time legal expenses and a historical capital transaction and management believes they do not correlate to the underlying performance of the business. As a result, the Company believes that adjusted net income provides important additional information for measuring its performance, provides consistency and comparability with the Company’s past financial performance, facilitates period to period comparisons of the Company’s operations, and facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The Company’s management team uses this metric to evaluate the Company’s business and believes it is a measure used frequently by securities analysts and investors. Adjusted net income does not represent, and should not be used as a substitute for net income, as determined in accordance with GAAP. The Company’s definition of adjusted net income may differ from that of other companies.

SKULLCANDY, INC.

RECONCILIATION OF DILUTED NET INCOME PER COMMON SHARE ATTRIBUTABLE TO

SKULLCANDY, INC. ON A GAAP BASIS TO ADJUSTED DILUTED NET INCOME PER SHARE

ATTRIBUTABLE TO SKULLCANDY, INC.

(in thousands of dollars)

(unaudited)