Target Corp. was very good to Cherokee Inc. in the second quarter.
Net income for the three months ended Aug. 3 expanded 20.5 percent, to $1.9 million, or 23 cents a diluted share, from $1.6 million, or 19 cents, a year ago.
Revenues, all derived from royalties, were up 18.9 percent to $7.5 million from $6.3 million in the 2012 period. Royalties from Target for use of the Cherokee brand in the U.S. were up 31.7 percent to $4.1 million from $3.1 million, and expanded their share of total revenues to 55 percent from 49 percent.
Cherokee said that Cherokee’s growth at Target and the addition of Liz Lange were the largest contributors to the increase in the top and bottom lines, with a 47 percent revenue increase at Tesco and expansion of its international licensee roster also contributing to the uptick. Target is the exclusive U.S. retailer of Liz Lange, which was acquired by Cherokee from Bluestar Alliance LLC for $14 million last September.
Henry Stupp, chief executive officer, said that the devaluation of several foreign currencies, including the Japanese yen, cut into results by about $131,000. Results were also limited by the early closure of Zellers in Canada, although Target already has assumed rights as licensee in the Canadian market.
“We are pleased with our ongoing refinement of our operating model and going forward we will continue to execute against our long-term strategic growth plan, as well as evaluate new acquisition opportunities to generate value for both our shareholders and retail partners,” Stupp said.
In addition to Cherokee and Liz Lange, Cherokee’s brand portfolio includes Sideout and Carole Little, as well as Completely Me, a Liz Lange sportswear offshoot.
In the first six months of 2013, net income declined 3.2 percent to $3.6 million, or 42 cents a diluted share, from $3.7 million, or 44 cents. Excluding costs associated with a review of internal controls, earnings per share for the most recent quarter were 50 cents. Revenues were up 12.5 percent to $15.5 million from $13.8 million.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye