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Cherokee Inc. (NASDAQ: CHKE), a leading licensor and global brand management company, announced today that its Board of Directors approved the distribution of a quarterly dividend of $0.20 per common share to stockholders of record as of December 1, 2011. The dividend will be payable on or about December 15, 2011.
The payment of any future dividends will be at the discretion of Cherokee's Board of Directors and will be dependent upon Cherokee's financial condition, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by Cherokee's Board of Directors. Cherokee has paid dividends to its stockholders on a consecutive quarterly basis since December 2003. Since 1996, the Company has paid approximately $217.5 million in dividends and distributions to its stockholders.
In addition, during the third quarter ended October 29, 2011, the Company repurchased a total of approximately 107,550 shares of its common stock in the open market, at an average price of $13.85 per share, for a total cash consideration of approximately $1.5 million. Under the existing share repurchase program, approximately 131,550 shares have been repurchased for a total of approximately $1.9 million at an average price of $14.33. The Company’s stock repurchase was conducted under the program by which Cherokee Inc.’s Board of Directors authorized the repurchase of up to 800,000 shares of the Company's common stock from time-to-time in the open market at prevailing market prices or in privately negotiated transactions.
The Company has also reduced its loan to US Bank by approximately 22% to-date, leaving an outstanding principle balance of $7.78 million; which represents the Company’s sole term loan.
“The quarterly dividend as well as the repurchase of our Company's shares, reflects both management and the Board of Directors' continued confidence in the strength and future of our business,” said Henry Stupp, Chief Executive Officer. “We remain intensely focused on maximizing shareholder value which includes considering strategic opportunities to realize the full potential of our global platform as well as leveraging the strengths of our management team and premier retail partners.”