Cherokee Inc a global marketer of style-focused lifestyle brands reported financial results for the fourth quarter and full year ended February 1, 2014.
Revenues for the fourth quarter increased 6.2% to $6.4 million, compared with $6.0 million in the prior-year period. SG&A expenses totaled $5.0 million, an increase from $4.3 million in the prior-year period. The increase in SG&A expenses during the quarter was primarily related to acquisition costs associated with the Hawk Brands acquisition of approximately $1.0 million.
For the quarter, net income totaled $1.0 million, or $0.11 per diluted share, compared with $1.1 million, or $0.13 per diluted share, in the fourth quarter of 2013. Non-GAAP net income totaled $1.7 million, or $0.20 per diluted share, compared with $1.1 million or $0.13 per diluted share in the prior-year period.
For Fiscal Year 2014, net revenues totaled $28.6 million, an increase of 7.7% from $26.6 million in the prior-year period. SG&A expenses totaled $18.6 million, up from $15.5 million in 2013. SG&A expenses during Fiscal 2014 included approximately $1.8 million for acquisition related expenses for the Hawk Brands acquisition and professional and consulting fees that were related to the identification and remediation of weaknesses identified in the Company’s 10-K/A for the Fiscal Year 2013.
Excluding those costs, Non GAAP SG&A totaled $16.8 million. For Fiscal 2014, net income totaled $6.1 million, or $0.72 per diluted share, compared with $6.8 million or $0.81 per diluted share, in Fiscal 2013. Non-GAAP net income totaled $7.2 million, or $0.86 per diluted share, compared with $6.8 million or $0.81 per diluted share, in Fiscal 2013.
“Fiscal 2014 was a year of challenges, growth and market complexities and we continued to see progress including the development of our portfolio of apparel categories, brands and geographies as well as the addition of financial and retail experts to our senior management team,” said Cherokee Inc. Chief Executive Officer Henry Stupp.
“The meaningful progress of our Cherokee brand, particularly with the launch of Cherokee adults on Target.com, along with our recent brand acquisition of Tony Hawk and Hawk Brands are examples of our success this past year, and we expect will be growth drivers for years to come. We continue to execute against our long-term strategic plan, as well as evaluate new acquisition opportunities in order to generate value for both our shareholders and partners.”
At February 1, 2014, the Company had cash and cash equivalents of $3.6 million, compared to $2.4 million at February 2, 2013.