Cherokee reports 12 percent rise in Q3 revenues

Cherokee’s net revenues for the third quarter ended

October 27, 2012 were $6.7 million (Rs 36 crores), up from $6.0 million (Rs 32 crores) in the prior-year period. The higher revenues in the quarter were driven by increased sales of Cherokee-branded products at Target and year-to-date progress at Zellers Canada. Together these revenues more than offset declines at Tesco.

SG&A expenses in the quarter totaled 3.4 million dollars (Rs 18 crore), a significant decrease from the 4.2 million dollars (Rs 22 crores) of SG&A expenses in the third quarter of fiscal 2012. Net income for the quarter was 2.1 million dollars (Rs 11 crores), or 0.25 dollars (Rs 13.5) per diluted share, compared with 1.0 million dollars (Rs 5 crore), or 0.12 dollars (Rs 6.4) per diluted share, in the prior-year period.

“With the holiday season in front of us and a new year in sight, the Cherokee Group is very pleased with the progress we have made and our positive growth outlook with our existing partners,” said Cherokee Group Chief Executive Officer Henry Stupp. “For the third quarter revenues were up 12 percent year-over-year, while SG&A expenses declined 19 percent. Our ability to maintain top-line growth while carefully managing our bottom line speaks to the global strength of our retail partners, our strong management team, and our exceptional group of designers, innovators, and relationship builders.”

“With regard to Tesco, we continue to see strong progress in the re-launch of Cherokee and expect to see improved revenues from this relationship during Q1 of Fiscal 2014. In addition, we are gratified to say that we continued to see an uptick in sales at Target for our Cherokee brand, with year-to-date revenues increasing 19.2 percent year-over-year,” Stupp said, adding, “We are privileged to work with the best retail partners in over 40 countries and appreciate the dedication they have shown to the Cherokee Group as we strive to enhance and improve our 360 degree approach to serving them. We expect the remainder of Fiscal 2013 to show positive results for the company while we continue to refine our operating model.”