Cherokee's 2Q net income falls on lower revenue

AP News
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Posted: Sep 08, 2011 5:30 PM
Cherokee's 2Q net income falls on lower revenue

Cherokee Inc., which licenses its brand to shoe and clothing makers, said Thursday that its fiscal second-quarter net income fell 32 percent as its revenue declined and some costs increased.

Cherokee, which earns royalties for such brands as Sideout and Carole Little, as well as the Cherokee brand sold at Target Corp., reported net income of $1.7 million, or 20 cents per share, for the quarter that ended July 30. That compared with $2.5 million, or 28 cents a share, a year earlier.

Revenue fell to $6.7 million from $7.5 million a year ago.

Selling, general and administrative expenses for the Van Nuys, Calif., company totaled $3.95 million, compared with $3.36 million.

Shares of Cherokee fell 2 cents to close Thursday at $12.18. After the company announced its results after the markets closed, its shares were unchanged.