Cherokee Repurchases Stock as Slow Sales Continue

0

Cherokee Inc. on Tuesday announced a stock repurchase and said it expected difficult economic times will continue to lower its apparel sales into 2010.

But the Van Nuys clothing brands licensor added that the slower sales in the United States should be offset by recent launches of its Cherokee brand in Israel, Brazil, and India, plus a planned 2009 launch in Spain. Those plus the recent introduction of the Norma Kamali brand at Wal-Mart stores should combine to provide “meaningful revenue contributions” starting next year.

Cherokee said that as of Oct. 13, the company repurchased 99,561 shares, about 1 percent of total shares outstanding, in its current third quarter. The company said it bought the shares for an average price of $17.62 for a total price of $1.98 million. There are 690,284 shares remaining under the board’s share buyback authorization

Shares of Cherokee were up 92 cents, or 5 percent, to $18.38 in Tuesday morning trading on the Nasdaq. The stock is down 42 percent from the first of the year.

No posts to display