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Tuesday, Oct 3, 2023

Cherokee Falls to 5-Year Low on Quarterly Results

The stock of Cherokee Global Brands (CHKE) fell to a five-year low Friday, a day after the company disclosed financial results for its second fiscal quarter of 2018. The apparel brand licensing firm, based in Sherman Oaks, reported adjusted net losses of $600,000 (-5 cents a share) for the period ended July 29. Cherokee reported net earnings of $1.5 million, or 17 cents a share, for the second quarter a year ago. The loss came as a surprise to Wall Street analysts, who had expected earnings of 20 cents a share, according to Thomson Financial. Revenues for the period were $14 million, topping analysts’ prediction of $11.1 million. The figure includes $8.3 million in indirect sales and royalty revenues from Hi-Tec, the industrial footwear brand acquired by Cherokee last year. Revenues from the firm’s other lines, which include the merchandise of professional skateboarder Tony Hawk and designer Liz Lange, fell around 34 percent from the prior year to $5.6 million. Cherokee reported its financial results Thursday. On Friday, its stock fell 75 cents, or around 16 percent, to close at $3.90 on the Nasdaq.

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