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Thursday, Sep 21, 2023

Cherokee’s Stock Plunges After Report

The stock of Cherokee Global Brands dropped more than 20 percent Wednesday after the company reported a third-quarter loss when Wall Street was expecting positive earnings. The Sherman Oaks-based apparel brand licensing company reported an adjusted loss of $740,000, equivalent to -5 cents a share, for the period ended Oct. 28. Analysts on average had expected earnings of 7 cents a share, according to Thomson Financial. In the same quarter last year, earnings were about $700,000, or 8 cents a share. Revenue exceeded expectations. For the quarter it was $11 million; Wall Street had anticipated $9.9 million. Revenue included $7.9 million from royalties, up from $6.5 million in the same quarter last year. The company’s stock (CHKE) fell 70 cents, or about 23 percent, on Wednesday to close at $2.25 on the Nasdaq.

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