On Friday, earbuds specialist Skullcandy (NASDAQ:SKUL) announced that Chief Executive Officer Jeremy Andrus has decided to resign and take a position with a private investment firm, sparking a 7% sell-off in the stock.

Skullcandy said in a statement that it has begun a search for a new CEO. Andrus will remain a "consultant" to the company for the next 12 months. Meanwhile, director, former CEO, and company founder Rick Alden will step in to serve as Interim CEO. 

Simultaneously with this announcement, Skullcandy preannounced fiscal 2012 earnings, saying it expects pro forma per-share income to be "at the lower end of the $1.00-$1.04 range the Company provided on November 1, 2012." GAAP net income is expected to be closer to $0.93 per share. Wall Street was looking for $1.01. 

Full financial results will be published on March 7, at which time Skullcandy says it will also provide new guidance for fiscal 2013.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Skullcandy. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.