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Thursday, Mar 28, 2024

Cherokee Makes Major Repurchase

Cherokee Inc. announced they have repurchased 99,561 shares of common stock in the open market. The repurchased shares represent approximately 1.1% of outstanding shares of Van Nuys-based company and were bought at an average price of $17.62 per share, at a total cost of $1.98 million. A double digit dividend and an unlevered balance sheet makes the buy back an attractive investment opportunity, said Cherokee Chairman and CEO Robert Margolis. Barring a compelling acquisition opportunity, and based on our expected earnings, excess cash and free cash flow, we believe we have a sustainable $2.00 per share annual dividend into the foreseeable future,” Margolis said. “We also believe that our disciplined strategy of not making high-priced acquisitions over the past few years has proven to be a prudent one. We are grateful that we have a highly profitable and stable business as well as a debt-free balance sheet.”

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