Cherokee Q4 Profit Beats Estimates, Sales Up

cherokeeSherman Oaks, CA—Cherokee Inc., which recent acquired the Hawks brands, reported late Thursday fourth quarter earnings that beat expectations.

For the quarter ended Feb. 1, Cherokee posted net income $1.7 million, or 20 cents a share, compared with $1.1 million, or 13 cents a share in the prior-year period. That beat analysts’ average estimate for 7 cents a share.

Net revenue increased 6.2% to $6.4 million, compared with $6 million a year ago.

Selling, general and administrative expenses increased to $5 million from $4.3 million a year ago primarily due to acquisition costs associated with the Hawk Brands acquisition of approximately $1 million.

“Fiscal 2014 was a year of challenges, growth and market complexities,” said Cherokee Inc. CEO Henry Stupp. “We continued to see progress including the development of our portfolio of apparel categories, brands and geographies as well as the addition of financial and retail experts to our senior management team. The meaningful progress of our Cherokee brand, particularly with the launch of Cherokee adults on Target.com, along with our recent brand acquisition of Tony Hawk and Hawk Brands are examples of our success this past year, and we expect will be growth drivers for years to come.

Cherokee Inc is a marketer and manager of a portfolio of lifestyle brands it owns or represents, licensing the Cherokee, Sideout and Carole Little brands and related trademarks and other brands.

 

 

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com

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