NEW YORK (TheStreet) -- Cherokee Inc
(CHKE - Get Report) posted positive fourth quarterly and fiscal year earnings results after Thursday's closing bell.
Cherokee shares closed the day down 0.8% to $12.99
Must Read: Warren Buffett's 10 Favorite Stocks
The global lifestyle brand marketer saw a year over year net revenue increase of 7.7% to $28.6 million while year over year quarterly revenue increased 6.2% to $6.4 million.
Non GAAP net income for the year was $7.2 million, or 86 cents per share, a 6% year over year increase from the $6.8 million, or $0.81 per share, it posted last year.
Net income for the quarter totaled $1 million, or 11 cents per share, compared to $1.1 million, or 13 cents per share the previous year.
- Net operating cash flow has increased to $2.09 million or 19.58% when compared to the same quarter last year. In addition, CHEROKEE INC/DE has also modestly surpassed the industry average cash flow growth rate of 9.59%.
- 39.23% is the gross profit margin for CHEROKEE INC/DE which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CHKE's net profit margin of 23.38% significantly outperformed against the industry.
- CHKE's debt-to-equity ratio of 0.83 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CHKE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.51 is high and demonstrates strong liquidity.
- CHEROKEE INC/DE's earnings per share declined by 24.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, CHEROKEE INC/DE reported lower earnings of $0.82 versus $0.89 in the prior year. For the next year, the market is expecting a contraction of 7.3% in earnings ($0.76 versus $0.82).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Textiles, Apparel & Luxury Goods industry. The net income has decreased by 24.7% when compared to the same quarter one year ago, dropping from $2.08 million to $1.56 million.
- You can view the full analysis from the report here: CHKE Ratings Report