Why Cherokee (CHKE) Stock Is Higher Today

NEW YORK (TheStreet) -- Shares of Cherokee Inc.  (CHKE) are surging, up 14.56% to $15.89, on Tuesday.

The apparel company reported financial results for the first quarter ended May 3, of 43 cents per diluted share versus earnings of 27 cents per diluted share, in the same period a year ago.  

Analysts surveyed by Thompson Reuters had expected 25 cents per share.

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Revenue rose 23.7% to $10 million, compared with $8.1 million, a year ago.

Cherokee cites its continuing organic growth of the Cherokee brand and the recent Tony Hawk brands acquisition.

Separately, 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 revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and feeble growth in the company's earnings per share."

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