Cherokee shares closed the day down 0.8% to $12.99
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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.
TheStreet Ratings team rates CHEROKEE INC/DE as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHEROKEE INC/DE (CHKE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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