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Monday, May 23, 2022

Quarterly Results Send Cherokee Shares Higher

Cherokee Global Brands announced third-quarter financials significantly higher than expectations, causing shares to jump nearly 11 percent. The Sherman Oaks licensing company reported net income of $2.3 million (27 cents a share), compared to $1.6 million (19 cents) for the same quarter last year. Revenues increased 30 percent to $8.7 million Analysts on average expected earnings of 21 cents a share on revenue of $8.1 million, according to Thomson Financial Network. The company credited the increased earnings and revenue to sales of its Tony Hawk-branded products and growth in international sales. “We are transforming from a North American-focused company to a global entity with our namesake Cherokee brand now in over 50 countries,” Chief Executive Henry Stupp said in a statement. Also, Stupp said Cherokee has high brand recognition in Europe, and the company is in the process of replacing Tesco, the U.K.-based retailer, with other chains to distribute its product in the region. Shares closed up $1.98 or 10.8 percent to $20.27 on the Nasdaq.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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