Cherokee Inc. saw net income fall in both the fourth quarter and full year.
For the three months ended Feb. 1, net income fell 11.7 percent to $951,000, or 11 cents a diluted share, compared with $1.1 million, or 13 cents, a year ago. Royalty revenues for the quarter rose 6.2 percent to $6.4 million from $6 million. Selling, general and administrative expenses were higher in the quarter, up to $5 million from $4.3 million year ago, due to the acquisition costs associated with its purchase of Hawk Brands for $1 million.
For the year, net income fell 11.1 percent to $6.1 million, or 72 cents a diluted share, on a revenue gain of 7.7 percent to $28.6 million.
Henry Stupp, chief executive officer, said, “We continued to see progress including the development of our portfolio of apparel categories, brands and geographies as well as the addition of financial and retail experts to our senior management team. The meaningful progress of our Cherokee brand, particularly with the launch of Cherokee adults on Target.com, along with our recent brand acquisition of Tony Hawk and Hawk Brands are examples of our success this past year, and we expect will be growth drivers for years to come.”