“We also remain encouraged by our domestic growth potential as we head into the important back-to-school season. Target’s sales of Cherokee branded merchandise for the month of May alone experienced a double-digit increase.

"In addition, since our re-launch in Tesco stores sales of Cherokee branded products are also up double-digits on a year-over-year basis in local currency. While we know it takes time to revitalize a relationship, we remain cautiously optimistic that we are off to a solid start with Tesco.”

Mr. Stupp concluded, “Just subsequent to the first quarter, we announced the launch of the Cherokee brand at Landmark Group’s Max Stores, the largest value fashion brand chain in the Middle East. Max is an incredible organization with a lot of depth. Their team truly knows how to sell, make, and market product, and we expect great things from the retailer in the future.”

At May 4, 2013, the Company had cash and cash equivalents of $1.1 million, compared to $2.4 million at February 2, 2013 due to the timing of the Company’s receipt of royalty payments.

Cherokee Inc