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

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X