Cherokee increases revenue in Q1, primes for brand launches
Cherokee Global Brands announced on Thursday the financial results for its first quarter of fiscal 2017 ended April 30, 2016.
GAAP revenues increased 4.4% to $10.7 million from $10.2 million due to the 3% increase in worldwide Cherokee brand royalties and the revenue contribution of Flip Flop Shops, which Cherokee acquired in October 2015.
GAAP net income was $2.6 million, or $0.29 per diluted share, compared to $3.6 million, or $0.41 per diluted share, in the prior first quarter.
Cherokee Chief Executive Officer Henry Stupp said, “In addition to the positive sales results for the quarter, we were pleased to announce new direct-to-retail partnerships and the signing of a broad base of domestic licensees for our namesake Cherokee brand. We see these developments as strong indicators of the strength of our brand portfolio and the agility that our 360-degree platform brings to our partners.”
The company added new retail partners and wholesale licenses for Cherokee in the first quarter in order to transition the brand domestically. The new partnerships and licenses, which include M. Hidary & Company and SaraMax Apparel Group among others, allows for Cherokee to expand into more categories and drive multiple revenue streams. The company expects to launch the namesake brand across multiple categories in stores and through e-commerce beginning spring 2017.
Stupp added, “We are excited about the upcoming summer launch of the Tony Hawk brand with Walmart Canada which will feature the most comprehensive assortment of Tony Hawk product anywhere in the world. In addition, the planned rollout of additional Flip Flop Shops franchise locations will build scale and further synergize our brand portfolio. Our recently announced launch with Cobian footwear for our Everyday California brand, which will launch within Flip Flop Shops, is a great example of how our brands logically support one another.”
In addition to the recent and upcoming launches, Liz Lange Maternity renewed its license with Target.
The Cherokee brand portfolio includes Cherokee, Carole Little, Tony Hawk Signature Apparel and Hawk Brands, Liz Lange, Everyday California, Sideout, ále by Alessandra and Flip Flop Shops.
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