Shares in Cherokee Inc. closed down 4 percent Wednesday after the licenser of clothing brand names reported lower first-quarter earnings.

Cherokee posted net income of $4.7 million (52 cents per share), a 6 percent drop from $5 million (56 cents per share) in the same period a year earlier.

Royalty revenue for the Van Nuys-based company fell to $11.5 million from $12 million a year earlier.

The company said domestic royalty revenue fell $1.2 million, mostly due to lower royalties from Target Corp. But that was partly offset by growing international royalties.

Shares in Cherokee closed down 3.9 percent to $24.95 and dipped as low as $24.26 during the day, its lowest level since October 2004.