Home / Knowledge / News / Fashion / Cherokee's net income for Q1 decreases
Cherokee's net income for Q1 decreases
10
Jun '09
Cherokee Inc, a leading global licensor and brand management company, reported its financial results for the first quarter ended May 2, 2009 (the “First Quarter”).

Partly as a result of the stronger U.S. dollar, which resulted in lower U.S. dollar based royalties from our international licensees, total royalty revenues for our First Quarter totaled $8.9 million, as compared to $11.5 million in the comparable period last year. Cherokee's operating expenses for the First Quarter totaled $3.1 million, as compared to $3.7 million in the comparable period last year, representing a reduction of expenses of $0.6 million, due to continued expense management policies.

Cherokee's net income for the First Quarter decreased by a total of $847,000 to $3.8 million or $0.43 per diluted share, as compared to $4.7 million, or $0.52 per diluted share in the year ago period. The year ago period included $0.5 million of audit royalties, or an estimated $0.03 per diluted share, which represented several years of past royalties due.

The Company estimates that our First Quarter diluted EPS would have totaled approximately $0.50 per share, or $0.07 higher, had exchange rates remained constant in the First Quarter as compared to the prior year. However, our First Quarter earnings also benefited by approximately $0.04 per diluted share from amended tax returns filed in the First Quarter. Normalizing for all of these adjustments to both periods, the Company estimates that First Quarter diluted EPS would have been $0.46 as compared to $0.49 per share last year.

Howard Siegel, President of Cherokee, stated, “Our domestic royalty revenues for the First Quarter decreased by $0.9 million from the prior year. This was primarily attributable to the reduction of Cherokee adult business at Target and the closure of Mervyn's. These declines were partially offset by our growth in the Cherokee children's business at Target and the Carole Little brand at TJX. We continue to discuss with Target expansion opportunities with the adult business for 2010.

Internationally, we experienced retail sales growth in local currencies ranging from 11% to 28% in Hungary, Poland, the Czech Republic and Slovakia with Tesco. However, in the U.K. retail sales in local currency declined by 12.7%, and as a result of the stronger dollar the exchange rate difference totaled -27.6%.

Although we expect that retail revenues may continue to be soft through the rest of this year, we believe we will benefit from our growing revenue streams from our Cherokee brand in Brazil, Chile, Peru and India, coupled with the continued growth of Norma Kamali at Wal Mart. In addition, we are excited about the upcoming launch of our Cherokee brand in Spain with Eroski, which is expected to occur in the second half of 2009, and believe this could grow to be a significant contributor to our future royalty revenues.”

Robert Margolis, Chairman and CEO, added, “We believe that our business model and debt-free balance sheet serve us well given the current challenges in the retail environment worldwide. Although we are not pleased with our First Quarter revenue results, we are pleased with our prudent expense management and are very certain that our sales teams are focused on some exciting growth opportunities we hope to announce over the next 6 months.”


Must ReadView All

Japan’s JICA promoting energy-saving devices in Bangladesh

Apparel/Garments | On 21st Feb 2018

Japan’s JICA promoting energy-saving devices in Bangladesh

The Japan International Cooperation Agency (JICA) is promoting use of ...

China’s JD.com announces financing pacts for JD Logistics

Textiles | On 21st Feb 2018

China’s JD.com announces financing pacts for JD Logistics

China’s largest retailer JD.com Inc recently announced it has entered ...

Courtesy: Indorama Ventures

Textiles | On 21st Feb 2018

IVL 2017 revenue up 17% y-o-y to $8,438 million

Indorama Ventures Public Company Limited (IVL) has reported revenue...

Interviews View All

Rajiv Sirohi
Shara

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

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silke Brand-Kirsch
Schlegel und Partner

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

February 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

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

Yes No

Active Poll

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

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

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

Yes No

Active Poll

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

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

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

Active Poll

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

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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