Home / Knowledge / News / Apparel/Garments / Target drives Q3FY'13 sales at lifestyle brand Cherokee
Target drives Q3FY'13 sales at lifestyle brand Cherokee
07
Dec '12
Cherokee Inc. a leading innovator and global marketer of style-focused lifestyle brands around the world reported financial results for the third quarter ended October 27, 2012.

Net revenues were $6.7 million for the quarter, up from $6.0 million in the prior-year period. The higher revenues in the quarter were driven by increased sales of Cherokee-branded products at Target and year-to-date progress at Zellers Canada. Together these revenues more than offset declines at Tesco.

SG&A expenses in the quarter totaled $3.4 million, a significant decrease from the $4.2 million of SG&A expenses in the third quarter of Fiscal 2012. Net income for the quarter was $2.1 million, or $0.25 per diluted share, compared with $1.0 million, or $0.12 per diluted share, in the prior-year period.

“With the holiday season in front of us and a new year in sight, the Cherokee Group is very pleased with the progress we have made and our positive growth outlook with our existing partners,” said Cherokee Group Chief Executive Officer Henry Stupp. “For the third quarter revenues were up 12% year-over-year, while SG&A expenses declined 19%.

Our ability to maintain top-line growth while carefully managing our bottom line speaks to the global strength of our retail partners, our strong management team, and our exceptional group of designers, innovators, and relationship builders.”

“With regard to Tesco, we continue to see strong progress in the re-launch of Cherokee and expect to see improved revenues from this relationship during Q1 of Fiscal 2014. In addition, we are gratified to say that we continued to see an uptick in sales at Target for our Cherokee brand, with year-to-date revenues increasing 19.2% year-over-year.”

Mr. Stupp continued, “While carefully managing our general expenses, we strategically invested for the future and proved successful in bringing new additions into our family of style-focused lifestyle brands. Most notably, at the beginning of the third quarter we welcomed Liz Lange Maternity and the Completely Me Brands to the Cherokee Group, marking our debut in the maternity category. The integration of Liz Lange is now fully complete, and we are currently working to build the brand with both Target and HSN while aggressively seeking new business opportunities internationally.”

Mr. Stupp concluded, “We are privileged to work with the best retail partners in over 40 countries and appreciate the dedication they have shown to the Cherokee Group as we strive to enhance and improve our 360 degree approach to serving them. We expect the remainder of Fiscal 2013 to show positive results for the Company while we continue to refine our operating model. In addition we will continue to seek new, successful brands to build our portfolio.

We remain confident in our strategic plan and will continue to monitor our investments in our infrastructure to ensure that we maintain a strong financial position as well as deliver solid returns for our shareholders.”

At October 27, 2012, the Company had cash and cash equivalents of approximately $2.0 million, down from $7.4 million at January 28, 2012 due to pre-payment of all outstanding principal and interest on the Company’s loan with U.S. Bank on June 5, 2012.

Cherokee Inc. is a global marketer and manager of a portfolio of Fashion and Lifestyle brands including Cherokee, Carole Little, Liz Lange and Side out, in multiple consumer product categories and sectors around the world.

Cherokee


Must ReadView All

Apparel/Garments | On 27th May 2016

Vietnamese garment makers sign MOU to boost standards

In a bid to improve their exports prospects, garment manufacturers in ...

Apparel/Garments | On 27th May 2016

AFWA seeks living wage for Asia's garment workers

Ahead of an International Labour Organization (ILO) conference, a...

Courtesy- Kornit Digital

Textiles | On 27th May 2016

Kornit introduces Storm Hexa digital printers at CITPE

Kornit Digital, an innovator in digital textile printing technology,...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

How do you see the competition from e-stores? What is the marketing...

Claudia Kersten
Global Organic Textile Standard

What benefits can MSMEs have from GOTS certification? What is the...

Anvita Mehra
Confidential Couture

At what rate is the luxury products market growing in India? How are...

Urs Stalder
Sanitized AG

<b><i>Urs Stalder, CEO, Sanitized AG, talks about the increasing use of...

Silke Brand-Kirsch
Schlegel und Partner

<b><i>Silke Brand-Kirsch, executive partner of Schlegel und Partner, a...

Ashok Desai
Bombay Textile Research Association

<b><i>Bombay Textile Research Association (BTRA) is a leading name in...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
May 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search