Cherokee Inc. reported its net earnings dipped 2.9 percent to $5.9 million or $0.67 per share for the first quarter ended April 29. Revenues were relatively flat against the same quarter last year, increasing just 0.1 percent to $13.2 million for the same period. The results compare with net income of $6.1 million or $0.69 per share on revenues of $13.2 million in the comparable period last year. The Van Nuys-based licensing and marketing company attributed the lackluster results in part to what it said was an unauthorized royalty revenue deduction of $900,000 taken by Mossimo Inc. The company said it expects to log the royalty revenue due during the second quarter of fiscal 2007 when a deal by Iconix Brand Group to acquire Mossimo is expected to close. ” this $900,000 difference in royalty revenues obviously affected our operating income, pre-tax income and net earnings per share,” said Russell J. Riopelle, CFO at Cherokee in a press release. The company also noted that royalty revenues from Target were down 9.7 percent in the current quarter versus the first quarter of fiscal 2006. Royalty revenues for the Cherokee brand from international licensees including Tesco and Zellers rose 34.4 percent.