CHEROKEE NET GROWS 28.9% IN 3RD QUARTER
NEW YORK — Profits at Cherokee Inc., which last month said it might be looking for a buyer, climbed 28.9 percent in the third quarter ended Oct. 30.
The licensor of the Cherokee and Sideout brands earned $2 million, or 24 cents a share, up from $1.6 million, or 18 cents, a year ago.
Royalty revenues gained 10.5 percent to $5.7 million from $5.1 million.
The firm said the gains stemmed from the continued expansion by Target Stores of the Cherokee trademark over a broader range of categories, and the success of Zellers’ launch of the Cherokee brand in Canada. Sales of the Cherokee brand grew to $364 million in the third quarter, up from $292 million a year ago.
Target accounted for 70 percent of sales in the quarter.
The Sideout brand also generated robust sales to Mervyn’s and reached licensing deals with J. Baker for its Casual Male and Repp. Ltd. Stores big-and-tall chains, as well as with the Nirve.com extreme sports Web site.
Cherokee hired the investment firm Financo Inc. last month to review a possible sale of its assets, a merger or an acquisition of another company.