Cherokee Seeks New Licensing Partners

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Van Nuys-based licensing and marketing company Cherokee Inc. said in a regulatory filing that it has begun to market its HouseBeautiful brand to other potential licensees after completing a buyout of its licensing agreement with May Department Stores Co.


The buyout resulted from May’s acquisition by Federated Department Stores.


Cherokee, whose brands include the Carole Little and Cherokee clothing lines, this week reported revenues increased 16 percent in the fourth quarter ended Jan. 28 to $9.9 million, versus $8.5 million for the fourth quarter of 2005.


The company said net income rose 8 percent to $4.4 million, or 49 cents per share, compared to earnings of $4 million or 46 cents, for the same period a year ago.


For the full year, Cherokee reported earnings of $18.3 million or $2.07 per diluted share, on revenues of $42.7 million. That compares with earnings of $17.2 million or $1.97 per share on revenues of $38.9 million last year. Net revenue included $1.1 million in the fourth quarter from the HouseBeautiful buyout.


Sales of Cherokee-branded products at Target Stores increased 3 percent in fiscal 2006 to $1.83 billion, which the company in its annual report to the U.S. Securities and Exchange Commission attributes to changes in the mix and placement of its products at Target locations.


Cherokee shares closed up 33 cents to $40.02 on Thursday. Markets were closed on Friday.