Apparel maker Cherokee Inc. reported fourth-quarter earnings plummeted 86.4 percent, because of a onetime payment that boosted last year’s results.
For the three months ended Feb. 2, earnings fell to $2.8 million, or 31 cents a diluted share, from $20.7 million, or $2.33, in the year-ago period. Last year’s results were helped by a $33 million payment in connection with a so-called finders agreement. In that transaction, Iconix Brand Group Inc. agreed to pay the $33 million to Cherokee in exchange for Cherokee dropping its offer to purchase Mossimo. That paved the way for Iconix to later acquire Mossimo. Total revenues, which predominantly come from royalties, fell 79 percent to $8.7 million from $42.2 million.
International royalties in the quarter grew 25 percent to $5.5 million from a year ago. The company expects international royalties to continue to increase, as its new global licensees begin to sell Cherokee branded products over the next two years.
For the full-year period, earnings sank 52.8 percent to $16.4 million, or $1.84 a diluted share, from $34.8 million, or $3.93, last year. Total revenues dropped 45.7 percent to $41.6 million from $76.6 million.
“We plan to build our brand representation business internationally utilizing the retail partnerships and relationships we have cultivated over the past several years,” said Robert Margolis, chairman and chief executive officer. “We believe that this will be a meaningful way for many brand owners to profitably build their presence outside the U.S.”
Cherokee is also anticipating the launch of Norma Kamali at Wal-Mart Stores Inc.
During the quarter, the company extended its licensing agreement with Target Corp. through Jan. 31, 2012, despite sales for the year falling 10.2 percent at the discounter.
Separately, the company approved the extension of its share repurchase plan to Jan. 31, 2010, for up to 800,000 shares.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia