US: Acquisition costs hit Cherokee Q4 profits
- Q4 earnings drop to US$951,000
- Sales climb 6.2%
Global brand management business Cherokee has booked a drop in fourth-quarter earnings as costs associated with its Hawk Brands acquisition weighed on profits.
In the three months ended 1 February net profit amounted to US$951,000. This compared to earnings of $1.1m a year earlier.
The company said SG&A expenses related to its acquisition totaled around $1m. Minus the costs, net income amounted to $1.7m.
Revenues for the fourth quarter increased 6.2% to $6.4m, compared with $6m in the prior year period.
"Fiscal 2014 was a year of challenges, growth and market complexities," said Cherokee CEO Henry Stupp. "We continued to see progress including the development of our portfolio of apparel categories, brands and geographies as well as the addition of financial and retail experts to our senior management team."
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