Shares of Sherman Oaks, Calif.-based Cherokee Inc. were off in after-hours trading following news of the company’s plans to sell shares of its common stock to help pay for its purchase of Hi-Tec Sports International Holdings B.V.

Hi-Tec, which has global headquarters in the Netherlands and U.S. offices in Oregon, sells hiking boots, walking shoes and other outdoor footwear and accessories.

Shares of Cherokee were down about 2.5 percent in after-hours trading, after closing down nearly 5 percent Monday to $10 a share for a market value of $87.1 million.

News of the issuance also came with preliminary results for the company’s third quarter ended Oct. 29 during which time the company said it expects revenue to be $6.5 million, which is down nearly 20 percent from the year-ago period and off from consensus estimates of $7.82 million.

The company attributed the decline in revenue to a fall off in North American royalties, citing its move to new licensing partners outside of Target.

The company said it expects adjusted earnings before interest, taxes, depreciation and amortization for the October quarter of $1.6 million and adjusted earnings per share of $0.08. That compares with adjusted EBITDA of $3.4 million and earnings per share of 22 cents in the year-ago period. Analysts expected earnings per share of 13 cents.

Cherokee also issued guidance for its fiscal year 2017, ending in January with revenue expected to total $32 million. Adjusted EBITDA is expected to end the year at $12.5 million with earnings per share of 76 cents.

The company also guided for fiscal year 2018, assuming the close of the Hi-Tec deal, and said it expects revenue to be in the range of $49 million to $50 million and adjusted EBITDA of $19 million to $20 million.