Cherokee Inc. (NASDAQ: CHKE), a global brand management company, today reported financial results for the second quarter ended July 28, 2012.
Net revenues were $6.3 million for the quarter, down from $6.7 million in the prior-year period. SG&A expenses for the second quarter totaled $3.64 million, a decrease from $3.95 million in the second quarter of Fiscal 2012. Net income for the second quarter was $1.6 million, or $0.19 per diluted share, compared with $1.7 million, or $0.20 per diluted share, in the prior-year period.
“The first half of Fiscal 2013 has been very productive for the Cherokee Group, marked by further global expansion, additional product category extensions and the continued development and execution of our long-term strategic growth plan,” said Cherokee Group Chief Executive Officer Henry Stupp. “Revenue growth in the first half of the year was well diversified geographically, with nearly all of our retail partners posting solid year-over-year increases in royalty revenues in most of the over 40 countries where Cherokee branded products are sold. In addition, to further drive the global growth of the business, we are thrilled to announce the acquisition of the Liz Lange and Completely Me brands and welcome Liz’s maternity collection into our strong brand portfolio.”
Mr. Stupp continued, “Throughout the quarter, Cherokee’s management team traveled around the globe to meet with key partners and support our 360 degree brand management approach. In fact, I just returned from meetings at Tesco’s London headquarters and look forward to the re-launch of Cherokee men’s, women’s, girls’ and boys’ clothing at Tesco in spring 2013. We are also very proud of the growth we saw this past quarter in Asia, Latin America, and of course, domestically, with our largest retail partner, Target. This positive progress with Target has continued into the third quarter.”Mr. Stupp concluded, “We expect the second half of Fiscal 2013 will continue to show encouraging developments for the Cherokee Group. Through the execution of our strategic plan, we look forward to continuing to generate unique, high-quality products, to increase our global distribution and to expand our brand portfolio to deliver strong returns for our shareholders.”