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Friday, Jun 2, 2023

Cherokee Inc. Reports Strong Second Quarter Earnings

Strong U.S. retail sales helped Cherokee Inc. beat analysts’ earnings estimates in fiscal second quarter earnings reported Thursday. The Van Nuys apparel and accessories licensing company posted net income of $1.9 million (23 cents a share) in the quarter ended Aug. 3, a 19 percent increase over the $1.6 million (19 cents) for the same quarter a year earlier. Net revenue rose 19 percent to $7.5 million. The Wall Street consensus was for earnings of 21 cents, according to analysts polled by Thomson Financial Network. Retail sales of its branded products at Target stores, as well as the addition of the Liz Lange brand to its portfolio, aided in its revenue growth. Cherokee also continued its expansion into the Middle East and Indonesia, but said some parts of its international business were challenging. “Revenues for the quarter increased nearly 19 percent despite the early closing of Zellers Canada and foreign currency devaluations,” said Chief Executive Henry Stupp, in a statement. Cherokee shares lost 11 cents, or nearly 1 percent, to close at $11.87 on the Nasdaq.

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