Exhibit 99.1

Skullcandy Reports Record Fourth Quarter and 2011 Financial Results

PARK CITY, UTAH – February 22, 2012 – Skullcandy, Inc. (NASDAQ: SKUL) today announced financial results for the fourth quarter and full year ended December 31, 2011.

Select Highlights

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

quarter of 2011 and 56.0% in the fourth quarter of 2010. The decline in gross margin in the fourth quarter 2011 from the fourth quarter of 2010 was the result of a shift in sales mix to certain products that carry temporarily lower gross margins and inventory acquired at a higher cost basis in the acquisition of Kungsbacka 57 AB and the transition to a direct model in Europe. The Company anticipates gross margin increasing on a full-year basis in 2012, as new sourcing initiatives and a higher mix of direct international sales are expected to benefit gross margin.

Selling, general and administrative expenses in the fourth quarter 2011 decreased 43.4% to $21.2 million and included $1.3 million of legal and settlement expenses related to a lawsuit with Monster Cable Products, Inc. (“Monster”). The expenses in 2010 included $17.5 million in compensation expense related to management incentive bonuses and $2.9 million in compensation expense as additional consideration to certain employee stockholders pursuant to the securities purchase and redemption agreement. The 2008 securities purchase and redemption transaction was finalized upon completion of our initial public offering.

GAAP net income in the fourth quarter of 2011 was $12.3 million, or $0.44 per diluted share, based on 28.0 million diluted weighted average common shares outstanding. Net loss in the same quarter of the prior year was $9.7 million, or $(0.69) per diluted share, based on 14.1 million diluted weighted average common shares outstanding.

Adjusted net income in the fourth quarter of 2011 which excludes $831 thousand, net of tax benefit, of legal and settlement expenses related to Monster was $13.2 million, or $0.47 per diluted share, based on 28.0 million diluted weighted average common shares outstanding. Adjusted net income in the same quarter of the prior year, which excludes $20.5 million in expenses related to the 2008 securities purchase and redemption agreement, was $10.7 million, or $0.54 per diluted share, based on 19.7 million diluted weighted average common shares outstanding. For a reconciliation of adjusted net income to net income (loss), see the accompanying tables at the end of this release.

EBITDA in the fourth quarter of 2011 increased to $21.4 million from $(8.0) million in the same quarter of the prior year. Adjusted EBITDA increased 16.9% to $22.7 million from $19.4 million in the same quarter of the prior year. For a reconciliation of EBITDA and adjusted EBITDA to net income, see the accompanying tables at the end of this release.

Recent Developments

On November 23, 2010, Monster filed a lawsuit in Utah state court against Skullcandy and one of our newly hired employees alleging, among other things, misappropriation of trade secrets and unfair competition. On February 15, 2012, the parties reached a full settlement. In connection with the settlement, Skullcandy incurred legal and settlement expenses, net of tax benefit, of $1.3 million in 2011 and expects to incur an additional estimated $800 thousand in legal expenses in the first quarter of 2012 associated with the matter. These represent one-time expenses associated with the settlement and the Company does not expect any additional expenses associated with this matter after the first quarter of 2012.

Outlook

For the full year 2012, the Company expects net sales of $275 million to $295 million and adjusted diluted earnings per share of $1.10 to $1.20. The adjusted diluted earnings per share excludes estimated first quarter legal expenses of approximately $800 thousand related to Monster that will be recorded in the first quarter of 2012. The 2012 adjusted diluted earnings per share range assumes a tax rate of approximately 35% and diluted weighted average shares outstanding of approximately 28.7 million.

Call Information

A conference call to discuss the fourth quarter and annual 2011 results is scheduled for today, February 22, 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 (719) 457-2087. In addition, a replay of the call will be available shortly after the conclusion of the call and remain available through February 29, 2012. To access the telephone replay, listeners should dial (858) 384-5517 and enter ID #6524609.

About Skullcandy, Inc.

Skullcandy became the world’s most distinct audio brand by bringing color, character and performance to an otherwise monochromatic space; revolutionizing the audio arena by introducing headphones, earbuds and other audio and wireless lifestyle products that possess unmistakable style and exceptional performance. From the award-winning, optic-inspired Roc Nation Aviator headphones to the evolutionary fitting FIX earbuds and a roster of the world’s finest athletes, musicians and artists, Skullcandy continues to redefine world-class audio performance and style. 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, 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 registration statement on Form S-1, including the Risk Factors contained in the Company’s registration statement, which is 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.

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.

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME

(in thousands of dollars)

(unaudited)

Non-GAAP Measures

Adjusted net income, for the periods presented, represents net income (loss) excluding expenses associated with the 2008 securities purchase and redemption agreement and legal and settlement expenses associated with the Monster litigation. These expenses relate to a historical capital transaction and one-time legal and settlement expenses and management believes they do not correlate to the underlying performance of our 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 (LOSS) 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)

SKULLCANDY, INC.

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

(in thousands of dollars)

(unaudited)

Non-GAAP Measures

EBITDA, for the periods presented, represents net income before interest expense, income taxes, certain other expenses and depreciation and amortization. Adjusted EBITDA for the three and twelve months ended December 31, 2010 gives further effect to the recording of compensation expense associated with one-time charges of $17.5 million in management incentive bonuses and $2.9 million payable as additional consideration to certain employee stockholders pursuant to the securities purchase and redemption agreement. Adjusted EBITDA also gives further effect to the recording of additional other expense of $1.4 million for the twelve months ended December 31, 2011 and $7.0 million and $14.6 million for the three and twelve months ended December 31, 2010, respectively, which represents other expense related to a derivative liability associated with the second and third contingency payments paid pursuant to the securities purchase and redemption agreement. Adjusted EBITDA also gives further effect to the recording of one-time legal and settlement expenses associated with Monster litigation of $1.3 million and $2.0 million for the three and twelve months ended December 31, 2011. These expenses were associated with a historical capital transaction and one-time legal and settlement expenses and management believes they do not correlate to the underlying performance of the Company’s business. As a result, the Company believes that adjusted EBITDA provides important additional information for measuring the Company’s 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 EBITDA does not represent, and should not be used as a substitute for income from operations or net income, as determined in accordance with GAAP. The Company’s definitions of EBITDA and adjusted EBITDA may differ from that of other companies.