The company announced the signing of a new Cherokee brand license agreement

The company announced the signing of a new Cherokee brand license agreement

Global brand management business Cherokee has offered an optimistic outlook despite booking a decline in third-quarter earnings and flat sales.

Net income in the three months ended 2 November slid 23.8% to US$1.6m from $2.1m a year earlier. Sales remained at $6.7m.

Revenues from the firm's Liz Lange and Cherokee School Uniform brands offset a "significant" decline in Cherokee royalty revenues at Zellers Canada.

Retail sales of Cherokee branded merchandise at Target US increased despite the tougher retail environment. However, royalty revenue from Target was down due to a deescalating royalty rate reached earlier this fiscal year.

The devaluation of several foreign currencies also negatively impacted revenues.

Also yesterday, the company announced the signing of a new Cherokee brand license agreement for specialty and freestanding stores in Thailand, Singapore, Malaysia, Vietnam and Myanmar with Apostrophy Inc., a subsidiary of Connectin Asia.

"With just over a month and a half remaining in the fiscal year, we remain confident that our brand initiatives, marketing efforts, and increased support and collaboration with our key partners positions the Cherokee Group well for the future," said CEO Henry Stupp. "Going forward, we will continue to evaluate ways to expand and enhance our current roster of brands as well as acquire additional brands to generate value for both our shareholders and retail partners."