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Thursday, Mar 28, 2024

Cherokee Profits Down in Fiscal ’08

Brand management company Cherokee Inc. reported financial results for the fourth quarter and fiscal year ended Feb. 2. Net income for Van Nuys-based Cherokee for the fiscal year was $16.4 million, or $1.84 per diluted share, on revenues of $41.6 million. That is a drop of nearly 53 percent compared to the net income of $34.8 million, or $3.93 per diluted share, on revenues of $76.6 million for fiscal year 2007. While the comparison suggests a poor year, the company explained that income in 2007 included one-time income of $27.7 million from the sale of its Mossimo Finder’s Agreement. That agreement provided for Cherokee Inc. to receive 15 percent of all earned royalties received from Mossimo’s license with Target Stores in perpetuity in exchange for finding and brokering the license agreement. “We are pleased with our overall results for the year as our Cherokee worldwide retail sales exceeded $2.5 billion,” President Howard Siegel said in a prepared statement. Shares in Cherokee closed down at $30.13.

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