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Lower royalty revenue hits Cherokee brand

09 Apr '09

4 min read

In addition, we look forward to launching in Spain and expect to launch in several countries in the Middle East over the next 6 to 12 months, while we continue to meet with premier retailers in open territories around the world to build on our 'world brand' strategy for our Cherokee brand. Furthermore, we will continue to pursue opportunities for the other brands we own and represent around the world."

Robert Margolis, Chairman and CEO, said, "The combination of our low-cost business model, coupled with the stability, consistency and geographic diversification of our revenue streams, gives us confidence about our business prospects in the future. We believe we have the right strategy in place to continue to increase shareholder value in the years ahead."

Russell J. Riopelle, Chief Financial Officer, added, "Although from April 2008 to April 2009 our stock price has declined over 55%, comparing Fiscal 2009 to Fiscal 2008 our revenues and diluted EPS declined by only 13% and 12%, respectively, during a difficult period for retail-related companies.

We finished this tumultuous year in a solid financial position, generating a significant amount of free cash flow and a balance sheet with $13.7 million in cash and no debt. This financial strength has allowed us to continue to pay significant dividends to our shareholders. We look forward to continuing to return excess profits to our shareholders, as conditions permit and at the discretion of our Board of Directors."

Cherokee Inc

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