Cherokee Inc. reported a decline in sales and net income on a year over year basis in the second quarter of 2010, which ended 7/31/2010.
Cherokee Inc. had royalty sales of $7.5 million in the second quarter of 2010, compared to sales of $8.1 million in the same quarter of 2009. Cherokee Inc. reported net income of $2.5 million, or $0.28 per diluted share, compared to net income of $2.9 million, or $0.32 per diluted share, in the corresponding quarter of 2009.
The management of Cherokee Inc. said the decline in royalty sales was due to unfavorable exchange rates and lower international royalties. Royalties from U.S. based accounts increased during the quarter, but failed to make up for the impact of the previous two items.
Cherokee Inc. paid a dividend of $0.38 per share in the second quarter of 2010, and ended the quarter with cash and cash equivalents of $7.3 million. The company has no long term or short-term debt.
Cherokee Inc. owns several different brands, which the company licenses out to third parties for use on its products. These products include apparel, footwear, home furnishings, recreational items and accessories. The company’s brands include Cherokee, Sideout and Carole Little.
For more information on the company, go to www.thecherokeegroup.com
Let us hear your thoughts below: