Cherokee Global Brands announced third-quarter financials significantly higher than expectations, causing shares to jump nearly 11 percent.
The Sherman Oaks licensing company reported net income of $2.3 million (27 cents a share), compared to $1.6 million (19 cents) for the same quarter last year. Revenues increased 30 percent to $8.7 million
Analysts on average expected earnings of 21 cents a share on revenue of $8.1 million, according to Thomson Financial Network.
The company credited the increased earnings and revenue to sales of its Tony Hawk-branded products and growth in international sales.
“We are transforming from a North American-focused company to a global entity with our namesake Cherokee brand now in over 50 countries,” Chief Executive Henry Stupp said in a statement.
Also, Stupp said Cherokee has high brand recognition in Europe, and the company is in the process of replacing Tesco, the U.K.-based retailer, with other chains to distribute its product in the region.
Shares closed up $1.98 or 10.8 percent to $20.27 on the Nasdaq.