Cherokee reports soft fiscal 2016 with help from Flip Flop Shops
Cherokee Brands reported on Thursday its financial results for the fourth quarter and fiscal year 2016 ended January 30, 2016.
The company’s GAAP revenues for the fourth quarter increased 4.1% to $7.8 million from $7.5 million in the prior-year period. Net income for the quarter totaled $1.4 million, and selling, general and administrative expenses were $5.9 million compared to $4.8 million in the previous fourth quarter. The increase in revenues and increase in SG&A was due to the acquisition of Flip Flop Shops in October.
The acquisition also offset the decrease in GAAP revenues for fiscal 2016, which was due primarily to the closing of Target Canada, the transition from Tesco to Argos, and the effect of foreign exchange rates on international royalties. The company reported a 0.9% decrease in revenues to $34.7 million from $35 million in the prior year, net income of $8.4 million and an increase in SG&A to $21.3 million from $19.6 million.
“Reflecting on the fourth quarter and full year, we were pleased with our ability to successfully navigate through the many changes that impacted our business, and to position Cherokee Global Brands for further growth,” noted Henry Stupp, chief executive officer. “During fiscal 2016, our branded retail sales approached $2 billion led by continued international growth and contributions from our strategic acquisitions, which include Flip Flop Shops.”
Cherokee Brands expects its domestic and international brand awareness to grow in 2017. The company’s global footprint currently spans over 9,000 doors in 50 countries worldwide.
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