Cherokee Inc. said its third quarter profit fell on lower royalty fees due to unfavorable exchange rate movements and falling retail prices.

The Van Nuys licenser of apparel, accessory and home furnishing brands on Wednesday reported net income slipped to $2.28 million (26 cents per share) in the quarter ended Oct. 31, compared with $2.77 million (31 cents) a year earlier.

Royalty revenue fell 3.7 percent to $7.7 million The company’s Cherokee, Sideout, and Carole Little brands are carried at Target, TJMaxx and Marshalls stores in the United States and comparable retail chains worldwide.

Analysts expected the company would earn 36 cent per share on revenue of $8.23 million.

“We are encouraged that our third quarter U.S. royalties kept pace with last year. However, this was offset by less favorable exchange rates and retailers’ reducing their prices, resulting in lower royalties from certain international accounts,” said Chief Financial Officer Russell Riopelle in a statement.

Shares closed up 1 cent, or less than 1 percent, to $19.88 on the Nasdaq.