Cherokee, a global brand management company, today reported financial results for the first quarter of fiscal 2013 ended April 28, 2012.
Net revenues were $7.5 million for the quarter, up from $6.9 million in the prior year period.
Net income for first quarter of fiscal 2013 was $2.1 million, or $0.25 per diluted share, compared with $3.3 million, or $0.38 per diluted share, in the first quarter of 2012. Fiscal 2012 net income included a one-time tax refund from the California Franchise Tax Board that contributed approximately $0.14 per diluted share.
“Our first quarter marked a strong quarter for the Cherokee Group and a solid start to the fiscal year,” Cherokee Group CEO Henry Stupp stated in the press release. “Consistent with the long-term strategic plan introduced last quarter, we have continued to make investments in our brands and partnerships; we have begun to see meaningful increases with some of our key partners as well as further global brand recognition. Despite the declines from Tesco and Norma Kamali during the first quarter, we reported a nearly 35 percent growth in the balance of our business over the past three months. This significant growth is emblematic of the emphasis we have placed on improving our product and brand penetration, developing our partnerships, and refining our direct-to-retail model.”
Stupp noted that its U.S. retail sales in Target stores increased 38 percent year-over-year. On an international basis, the company is working to strengthen its relationship with UK’s Tesco, as well as other leading partners.
“Globally we have seen growth from all of our larger partners including Russia, China, Canada, Latin America, Mexico and Japan,” said Stupp. “Fiscal 2013 will be a year of further development for the Cherokee Group as we continue to make investments and improvements to generate the highest quality product while simultaneously promoting long-term sustainable value for our shareholders.”
Subsequent to the end of the first quarter, Cherokee paid down in full its loan with U.S. Bank, eliminating all debt on the balance sheet.
For more information visit www.cherokeegroup.com
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