Net revenues were $6.3 million for the quarter, down from $6.7 million in the prior-year period. SG&A expenses for the second quarter totaled $3.64 million, a decrease from $3.95 million in the second quarter of Fiscal 2012. Net income for the second quarter was $1.6 million, or $0.19 per diluted share, compared with $1.7 million, or $0.20 per diluted share, in the prior-year period.
“The first half of Fiscal 2013 has been very productive for the Cherokee Group, marked by further global expansion, additional product category extensions and the continued development and execution of our long-term strategic growth plan,” said Cherokee Group Chief Executive Officer Henry Stupp.
“Revenue growth in the first half of the year was well diversified geographically, with nearly all of our retail partners posting solid year-over-year increases in royalty revenues in most of the over 40 countries where Cherokee branded products are sold. In addition, to further drive the global growth of the business, we are thrilled to announce the acquisition of the Liz Lange and Completely Me brands and welcome Liz’s maternity collection into our strong brand portfolio.”
Mr. Stupp continued, “Throughout the quarter, Cherokee’s management team traveled around the globe to meet with key partners and support our 360 degree brand management approach.
“In fact, I just returned from meetings at Tesco’s London headquarters and look forward to the re-launch of Cherokee men’s, women’s, girls’ and boys’ clothing at Tesco in spring 2013. We are also very proud of the growth we saw this past quarter in Asia, Latin America, and of course, domestically, with our largest retail partner, Target. This positive progress with Target has continued into the third quarter.”
Mr. Stupp concluded, “We expect the second half of Fiscal 2013 will continue to show encouraging developments for the Cherokee Group. Through the execution of our strategic plan, we look forward to continuing to generate unique, high-quality products, to increase our global distribution and to expand our brand portfolio to deliver strong returns for our shareholders.”
The Cherokee Group announced that it has acquired the Liz Lange Maternity and Completely Me brands for an aggregate purchase price of up to $14 million, inclusive of performance based earn-outs.
Mr. Stupp noted, “On top of the strong strategic rationale, the economics of the transaction are equally compelling. We expect the transaction to prove immediately accretive and deliver positive free cash flow. Longer term, we see the opportunity to deliver accelerated top-line growth through enhanced merchandising and marketing initiatives as well as expanded distribution worldwide.”
Textiles | On 27th Feb 2017
The textile industry is one of the most strategic platforms through...
Textiles | On 27th Feb 2017
KBR, Inc has bagged a technology licensing and basic engineering...
Apparel/Garments | On 25th Feb 2017
Gildan Activewear, which recently acquired US fashion brand American...
Fabric does not restrict us from fashion trends
Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd
Productivity, creativity and innovation play a vital role in the growth of ...
‘The terms eco-friendly and organic are common but everyone perceives them ...
Nature Works LLC
Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...
Technical Absorbents Ltd
Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...
Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...
Rupa Sood and Sharan Apparao
Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...
Label Ritu Kumar
‘Classics will return’ "There are a lot of people wearing western clothes ...
Hyderabad-based designer Prathyusha Garimella is known for blending...