Cherokee Global Brands released on Thursday its earnings for its first fiscal quarter of 2018, a little more than a week after announcing it had received a noncompliance notice from the Nasdaq Stock Market for failing to submit a quarterly report on time.
The Sherman Oaks apparel licensing company reported unaudited losses of $900,000 (-7 cents a share) for the quarter ended April 29, compared to income of $3 million (34 cents a share) the prior year. Wall Street analysts on average had expected quarterly earnings of 13 cents a share, according to Thomson Financial.
Revenue for the period was $11.1 million, including $5.9 million generated by Hi-Tec, the industrial footwear company acquired by Cherokee last year. Not including Hi-Tec, revenues fell to $5.2 million, a decline of more than 50 percent year over year. Analysts had predicted revenues of $9.25 million.
New wholesale licensing partners are slated this month to begin distributing wholesale orders of Cherokee’s Tony Hawk branded merchandise, Chief Executive Henry Stupp said in a statement. The company is in talks to expand the professional skateboarder’s brand throughout Asia ahead of the 2020 Olympics in Japan, where skateboarding will make its Olympic debut.
Cherokee (CHKE) announced its results after the market closed on Thursday. Shares closed up 85 cents, or just over 12 percent, to $7.75 on the Nasdaq.