The Cherokee brand itself continues to be a top performer among the mostly 24-54 year old active lifestyle moms who can find amazing value for the family, no matter the budget. With great appeal to dads as well, Cherokee represents quality fashion for the entire family and is known by consumers in just about every country.
Cherokee wields an impressive market presence today through this portfolio, acting as a brand management company responsible for the marketing, placement, licensing, and other relevant tasks. With some thirty continuing license agreements in play, spanning domestic/international markets, the company is well-positioned to drive shareholder value through increasing awareness of the brands, innovation within category, and infrastructural growth, as the products find their way on to more and more store shelves.
Just look at some of the key license agreements with top retailers, like Target Stores (pulling superb numbers year-over-year with the Cherokee brand) here in the U.S., or Tesco in the UK (which is essentially the Wal-Mart of the UK and related markets in Europe), and you can readily see the kind of market penetration these brands achieve. The company is working hard to expand and develop these relationships and the improved interest from Tesco clearly expressed through 2013 is a positive sign despite declining European markets (quality consumer goods have a way of being resilient, even in the midst of a sovereign debt crisis).
Beyond Cherokee® they have the popular Sideout® and Sideout Sport® brands that grew out of the beach/volleyball culture of California (and has since taken off across the country, as well as finding serious traction in Mexico and China) and is seen by many as defining the cool, relaxed-fit California style. Fashion-focused brands include designer-driven Carole Little®, which has seen increasing success since its inception in 1975 when Mrs. Little first assembled the contemporary selection for upper tiered department stores, and All That Jazz®, a modern active fashion/lifestyle brand for girls, juniors, and women who want the best in stylish, playful, and confident attire.
Such brands clearly depict the reasons behind CHKE’s continued revenue momentum; each brand has a sophisticated identity and market vector, with a finely tuned sense of the target consumers, their needs, and their sensibilities. By offering items within a brand that span multiple consumer product categories and sectors that go beyond typical apparel and hit salient areas like cosmetics, accessories, footwear, and the like, CHKE has been able to cordon off sizable chunks of the consumer market for itself.
Well-timed management prowess executing clearly defined brands through license arrangements with top retailers in major global markets, just as some of the key markets like Russia (via Magnit stores), China (RT-Mart), Canada (TJX Companies – which also has a good presence in European markets), Mexico (Comercial Mexicana), Latin America (Falabella), and Japan (Nishimatsuya) see improved throughput. With solid financials built on robust uptake by global end markets, CHKE is sitting pretty despite a decision by a top retailer not to renew their Norma Kamali brand license.
The company simply hits back with renewed vigor under such circumstances, with offerings like female health and wellness icon Laila Ali’s signature Laila Ali® brand, that continues to do well bringing the renown of this woman who stands for female empowerment, together with a wide selection of footwear, accessories, sporting goods, health/wellness products, and of course apparel which appeal directly to her fans.
The company’s ability to continue driving in serious performance optimization and growth metrics despite declining European margins speaks directly to the appeal of Cherokee’s brands across the global market. We can see improvements to the company’s bottom line even in emergent or smaller markets like South Africa (Pick ‘n Pay), India/Middle East (Arvind Mills), and Israel (Shufersal Ltd.), as the product mix circulates and consumers respond favorably.
In addition to the exemplary work done with their owned and acquired brands, CHKE has developed such proficiency in this regard that the company actively engages other companies in identifying lucrative licensees and licensing arrangements for their own brands. CHKE has made a name for itself covering everything from marketing and solicitation of licensees, to contract negotiation, license maintenance, and even distribution agreements.
It is a clear recipe for shareholder value growth and the company is continually seeking out new licensing arrangements and new brands to keep the retail direct license ball rolling. As of today, more Cherokee products are on more store shelves across the globe than at any other point in the company’s history, according to the CEO of CHKE, Henry Stupp.
The global initiative to expand the sales/marketing infrastructure, the implementation of a 360-degree service-model, and the eminent position CHKE is in from a merchandising and product development standpoint, all combine to make the company a real textile/apparel sector powerhouse. The company continues to grow sustainably along well-defined trajectories and this growth is reinforced by some of the best marketing/product development capabilities in the business today.
For more information on Cherokee Inc., or its numerous brands, please visit the company’s Web site at: www.CherokeeGroup.com
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