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.”
About Cherokee Inc.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 (U.S.), Tesco (U.K., Ireland and certain Central European countries), Zellers (Canada), RT-Mart (Peoples Republic of China), Pick ‘n Pay (South Africa), Falabella (Chile, Peru and 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 (U.S., Canada and Europe). Statements included within this news release may contain forward-looking statements for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. When used, the words “anticipates”, “believes”, “expects”, “may”, “should” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements included in this press release (including, without limitation, express or implied statements regarding potential future business development and the anticipated credit facility) involve known and unknown risk and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties, include, but are not limited to, the effect of global economic conditions, the financial condition of the apparel and retail industry, adverse changes in licensee or consumer acceptance of products bearing the Company’s brands the ability and/or commitment of the Company’s licensees to design, manufacture and market Cherokee, Sideout and Carole Little branded products, the Company’s dependence on a select group of licensees for most of the Company’s revenues and the Company’s dependence on its key management personnel. The risks included here are not exhaustive. A further list and description of these risks, uncertainties and other matters can be found in the Company’s Annual Report on Form 10-K for Fiscal Year 2010, and in its periodic reports on Forms 10-Q and 8-K (if any). Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intent or obligation to update any of the forward-looking statements contained herein to reflect future events and developments.