Cherokee’s Q1 net revenue grows to $7.5 mln

Cherokee reported its financial results for the first quarter

ended April 28, 2012. Net revenues were reported to have grown to $7.5 million (Rs 41 crores) from $6.9 million (Rs 38 crores) in the prior year period. SG&A expenses totaled $4.2 million (Rs 23 crores), an increase from $3.3 million (Rs 18 crores) in the prior year quarter. Net income was $2.1 million (Rs 11 crores) or $0.25 (Rs 13) per diluted share, compared with $3.3 million (Rs 18 crores), or $0.38 (Rs 21) per diluted share. At April 28, 2012, the Company had cash and cash equivalents of $7.1 million (Rs 39 crore); down from $7.4 million (Rs 40 crores) at January 28, 2012.

Subsequent to the end of the first quarter, the Company paid down in full its loan with US Bank, thereby eliminating all debt on the balance sheet. The three-year, $10 million (Rs 55 crores) loan was repaid in just over one year – a testament to Cherokee Group’s strong cash flow.

Cherokee Inc is a global marketer and manager of a portfolio of Fashion and Lifestyle brands it owns and represents in multiple consumer product categories and sectors around the world. The Company has license agreements with premier retailers and manufacturers covering over 30 countries around the world including Target Stores (US), Tesco (UK, Ireland and certain Central European countries),Zellers (Canada), RT-Mart (Peoples Republic of China), Pick ‘n Pay (South Africa), Falabella (Chile, Peruand Colombia), Arvind Mills (India and certain Middle Eastern countries), Shufersal LTD. (Israel), Comercial Mexicana (Mexico), Eroski (Spain), Nishimatsuya (Japan), Magnit (Russia) and the TJX Companies (US, Canada and Europe).