Cherokee Inc. reported a dip in income in its fiscal fourth quarter Thursday, partially attributed to the data breach at its retail partner Target Corp.
The Van Nuys apparel brand licensor reported net income of $1 million (11 cents a share) in the quarter ended Feb. 1, compared to $1.1 million (13 cents) in the same period a year earlier. Revenue increased more than 6 percent to $6.4 million.
An analyst had expected earnings of 7 cents, according to Thomson Financial Network.
In a conference call, Chief Executive Henry Stupp said Target’s December data breach negatively impacted sales of its apparel, but noted that sales this quarter have already showed signs of bouncing back.
“We’re the kind of brand that has a level of stability built into it,” he said. “We continued to see progress including the development of our portfolio of apparel categories.”
Stupp said that future revenue will grow with the $19 million acquisition of skateboarder Tony Hawk’s clothing brands. The line was acquired from Quiksilver Inc. of Huntington Beach, and Cherokee has plans to take it worldwide.
For the year, Cherokee reported net income of $6.1 million (72 cents), compared to $6.8 million (81 cents) in 2012. Revenue increased nearly 8 percent to $28.6 million.
An analyst had expected annual earnings of 76 cents, according to Thomson Financial Network.
The earnings follow an announcement earlier this week that the company will distribute a quarterly dividend of 5 cents a share, payable on June 15 to stockholders of record as of April 11.
Shares closed down 11 cents, or less than 1 percent, to $12.99 on the Nasdaq.