Cherokee Global Brands (NASDAQ: CHKE), a global marketer of style-focused lifestyle brands, commented today on Target's decision to discontinue operations in Canada. "Despite the closing of Target Canada stores," commented Cherokee Global Brands CEO Henry Stupp, "our Company remains very well-positioned for continued top-line and bottom-line growth going forward including organic growth with our existing global partners, the addition of new partners, and growth through additional brand acquisitions. We believe today's decision by Target should yield positive long-term results for our brands stateside as they focus their efforts in growing their brick-and-mortar business in addition to their burgeoning e-commerce platform. Our increasingly diversified revenue stream marked by best-in-class partners in over 50 countries puts Cherokee Global Brands in a position of strength as we enter Fiscal 2016." Historically, Target Canada has represented less than 1.8% of total revenues for Cherokee Global Brands. As such, the Company anticipates minimal, if any, impact from the closure of Target Canada stores. Cherokee will continue to receive contractual guarantees from Target through January 31, 2017 as set forth by the Target Amendment to the Restated License Agreement entered into on January 2, 2014. The Company believes that it will have multiple opportunities to engage a new licensee of the Cherokee brand in Canada. Management anticipates that the Target Canada closure will not have a material effect on Cherokee's financial results for fiscal year ending January 31, 2015. About Cherokee Global Brands Cherokee Global Brands is a global marketer and manager of a portfolio of Fashion and Lifestyle brands including Cherokee®, Carole Little®, Tony Hawk® Signature Apparel and Hawk Brands®, Liz Lange® and Sideout®, in multiple consumer product categories and sectors around the world. The Company has license agreements with premier retailers and manufacturers covering over 40 countries around the world including Target Stores (U.S.), Kohl's (U.S.), 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), Landmark Group's Max Stores (certain Middle East and North Africa countries), 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) 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, Liz Lange, Completely Me, Sideout and Carole Little branded products, the Company's dependence on Target 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 2014, and in its periodic reports on Forms 10-Q and 8-K. 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.