Exhibit 99.1

Skullcandy Announces Record Fourth Quarter and 2012 Net Sales

PARK CITY, UTAH – March 7, 2013 – Skullcandy, Inc. (NASDAQ: SKUL) today announced financial results for the fourth quarter and full year ended December 31, 2012.

Select Highlights

“We are pleased with our overall fourth quarter results during what was a challenging environment,” said Rick Alden, Skullcandy’s Interim Chief Executive Officer. “Our intention in 2013 is to tighten our original distribution strategy and make key investments in product development and demand creation while endeavoring to reengage the consumer at the point of sale. I am confident that, with the solid foundation already in place and the talented group of people working here, we can accomplish our near-term objectives while creating a stronger, more efficient company for the future.”

Fourth Quarter Results

Net sales in the fourth quarter of 2012 increased 21.0% to $101.0 million from $83.4 million in the same quarter of the prior year. North America net sales in the fourth quarter increased 12.0% to $82.7 million from $73.8 million in the same quarter of the prior year. International net sales in the fourth quarter increased 90.2% to $18.3 million from $9.6 million in the same quarter of the prior year. The increase in North America net sales was primarily driven by increased Astro Gaming sales of $13.6 million. The increase in international net sales was primarily driven by increased sales in Europe.

Gross profit in the fourth quarter of 2012 increased 8.5% to $45.2 million from $41.6 million in the same quarter of the prior year. Gross profit as a percentage of net sales, or gross margin, was 44.7% in the fourth quarter of 2012 compared to 49.9% in the same quarter of the prior year. The decrease in gross margin is due to increased sales of lower margin products, increased sales in lower margin channels and discounting.

Selling, general and administrative expenses in the fourth quarter 2012 increased 29.8% to $27.5 million and included $1.5 million of bad debt expense due to the bankruptcy filing of a major retail customer and $0.7 million of expenses associated with the settlement of a patent litigation matter. As a percentage of net sales, selling, general and administrative expenses increased to 27.2% from 25.4% in the same quarter of the prior year.

Net income attributable to Skullcandy, Inc. in the fourth quarter of 2012 was $11.5 million, or $0.41 per diluted share, based on 27.8 million diluted weighted average common shares outstanding. Net income attributable to Skullcandy, Inc. in the same quarter of the prior year was $12.3 million, or $0.44 per diluted share, based on 28.0 million diluted weighted average common shares outstanding. Excluding certain expenses related to the bankruptcy filing of a major retail customer in Europe and expenses associated with the settlement of a patent

litigation matter, non-GAAP adjusted net income in the fourth quarter of 2012 was $13.2 million, or $0.47 per diluted share based on 27.8 million diluted weighted average common shares outstanding. Non-GAAP adjusted net income in the same quarter of the prior year was $13.2 million, or $0.47 per diluted share based on 28.0 million diluted weighted average common shares outstanding. For a reconciliation of non-GAAP adjusted net income to net income and non-GAAP diluted earnings per share to GAAP earnings per share, see the accompanying tables at the end of this release.

Balance Sheet Highlights

As of December 31, 2012, cash and cash equivalents totaled $19.3 million compared to $23.3 million at December 31, 2011 and the Company had no long-term debt. As of December 31, 2012, the Company had $27.8 million of availability under its credit facility. Inventory decreased 5.5% to $41.6 million as of December 31, 2012 from $44.0 million as of December 31, 2011. Accounts receivable increased 50.8%, or $25.7 million, to $76.3 million as of December 31, 2012. The increase is primarily due to increased receivables of $13.7 million at Astro Gaming due to the launch of Astro products at certain retail stores and an increase in other international receivables, as well as an overall increase in fourth quarter sales in 2012 compared to 2011.

Call Information

A conference call to discuss the fourth quarter and annual 2012 results is scheduled for today, March 7, 2013, 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 (719) 457-2679. In addition, a replay of the call will be available shortly after the conclusion of the call and remain available through March 14, 2013. To access the telephone replay, listeners should dial (858) 384-5517 and enter ID #9284479.

About Skullcandy, Inc.

Skullcandy is a leading 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 was launched in 2003 and quickly became one of the world’s most distinct audio brands by bringing unique technology, 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. Important factors that could cause actual results to differ materially from expectations are disclosed under the “Risk Factors” section of the 2011 10-K filed with the Securities and Exchange Commission on March 23, 2012 and in the Company’s most recent Form 10-Q for the quarter ended September 30, 2012. 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

Non-GAAP Measures

Non-GAAP adjusted net income and non-GAAP adjusted fully diluted earnings per share, for the periods presented, represents diluted net income per share excluding the impact of expenses associated with the second and third contingent payments pursuant to the securities purchase and redemption agreement (a

historical capital transaction), a reserve for uncollectible receivables resulting from the bankruptcy filing of a major retail customer and expenses associated with the settlement of patent litigation and other litigation. Management does not believe these expenses correlate to the underlying performance of the business. As a result, the Company believes that non-GAAP adjusted net income and non-GAAP adjusted fully diluted earnings per share 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 these metrics to evaluate the Company’s business and believes they are a measure used frequently by securities analysts and investors. Non-GAAP adjusted net income and adjusted fully diluted earnings per share do not represent, and should not be used as a substitute for net income and diluted earnings per share, as determined in accordance with GAAP. The Company’s method of calculating non-GAAP adjusted net income and adjusted fully diluted earnings per share may differ from that of other companies.

Contacts

ICR

Brendon Frey / Joe Teklits

203-682-8200

Brendon.Frey@icrinc.com

Joseph.Teklits@icrinc.com

-Financial Tables Follow-

SKULLCANDY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

(unaudited)

SKULLCANDY, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands of dollars)

(unaudited)

SKULLCANDY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of dollars)

(unaudited)

SKULLCANDY, INC.

SEGMENT INFORMATION

(unaudited)

Prior to the Company’s acquisition of Kungsbacka 57 AB in August of 2011, the Company operated in one business segment. The North America segment primarily consists of Skullcandy and Astro Gaming product sales to customers in the United States and Mexico (through the Company’s joint venture). The international segment primarily includes Skullcandy product sales to customers in Europe and Asia that are served by the Company’s European and Asian operations. Included in the North America segment for the three months ended December 31, 2012 and 2011 and twelve months ended December 31, 2012 and 2011 are net sales of $8.9 million and $5.2 million and $26.1 million and $33.8 million, respectively, that represent products that were sold from North America to retailers and distributors in other countries. The international segment for the twelve months ended December 31, 2011 only includes activity from August 26, 2011 through December 31, 2011.

SKULLCANDY, INC.

RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED NET INCOME

(in thousands of dollars)

(unaudited)

SKULLCANDY, INC.

RECONCILIATION OF DILUTED EARNINGS PER SHARE - GAAP TO DILUTED EARNINGS PER

SHARE – NON-GAAP

(unaudited)