Home / Knowledge / News / Apparel/Garments / 2012 to be a highly transformational year, Cherokee CEO
2012 to be a highly transformational year, Cherokee CEO
15
Apr '11
Cherokee Inc, a global brand management company, reported financial results for the fourth quarter and fiscal year ended January 29, 2011.

Fourth Quarter 2011 Highlights

• Net revenues of $7.4 million, compared with $7.6 million a year ago
• SG&A expenses were $7.3 million, compared to $2.4 million a year ago, which included approximately $5.1 million in payments made to the former Executive Chairman, Robert Margolis, comprised of a bonus of $1.8 million and a severance payment of $2.3 million, as well as expenses related to accelerating vesting of remaining stock options held by the former Executive Chairman and to the issuance following Mr. Margolis' departure of fully vested stock options to the incoming non-Executive Chairman, Jess Ravich, totaling approximately $1.1 million. Cherokee does not have any further payment obligations to Mr. Margolis. In addition, management expects aggregate severance payments, aggregate bonus payments and aggregate non-cash stock compensation for Fiscal 2012 to be materially lower than Fiscal 2011. Management anticipates a material and significant reduction to selling, general and administrative expenses in Fiscal 2012 in comparison to Fiscal 2011 due to certain expenses incurred in Fiscal 2011, which approximated $5.9 million.
• Net income of $44,000, or $0.00 per diluted share
• Cash and cash equivalents of $9.6 million at January 29, 2011
• Signed an exclusive international agreement with CJSC Tander ("Magnit") for the Cherokee brand in Russia through April 30, 2015
• Signed an exclusive international agreement with Nishimatsuya for the Cherokee brand in Japan through January 31, 2017

Fiscal Year 2011 Highlights

• Net revenues of $30.8 million, compared with $32.6 million a year ago
• Worldwide retail sales of Cherokee-branded merchandise exceeded $1.4 billion
• SG&A expenses were $17.9 million, which, as discussed above, included $5.9 million of severance, bonuses, and non-cash compensation to the former and current Chairman, compared with $12.2 million a year ago
• Net income of $7.7 million, or $0.87 per diluted share, compared to $12.6 million, or $1.43 per diluted share for Fiscal 2010
• Henry Stupp named new Chief Executive Officer and member of Board of Directors
• Mark DiSiena named new Chief Financial Officer
• Jess Ravich, an independent director of Cherokee, named non-Executive Chairman of the Board
• Announced seven new partnerships for the Cherokee and Sideout brands and engaged Vita Foods as Laila Ali's wholesale licensee for its consumer products

"While I am disappointed with our fourth quarter results, I believe that our recently enhanced brand marketing, creative and support services will stabilize and ultimately grow our existing business while we expand both our existing domestic and international business presence," said Henry Stupp, Chief Executive Officer of Cherokee Inc. "We finished the year on solid financial footing, despite an overall soft consumer market. We reported our 15th consecutive year of profit, after incurring some non-recurring severance costs related to management restructuring and executive departures, as well as non-cash expenses related to the acceleration of vesting of stock options."

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Lee Cooper

Apparel/Garments | On 28th Mar 2017

CCI clears FLFL proposal to divest Lee Cooper

The Competition Commission (CCI) of India has approved the proposal...

Textiles | On 28th Mar 2017

Bardoli CEFC to benefit south Gujarat MSMEs

India’s first common engineering facility centre (CEFC) at Bardoli,...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search