US: Cherokee Q1 profit falls on investment costs
- Q1 net income fell 36.4% to $2.1m from $3.3m
- Revenues rose 8.7% to $7.5m from $6.9m
- SG&A expenses up to $4.2m from $3.3m
Global brand management business Cherokee Inc has seen its first quarter profit fall 36.4% after investments in its brands and partnerships offset higher sales of its namesake line.
"Our first quarter marked a strong quarter for the Cherokee Group and a solid start to the fiscal year," said CEO Henry Stupp.
"Consistent with the long-term strategic plan introduced last quarter, we have continued to make investments in our brands and partnerships; we have begun to see meaningful increases with some of our key partners as well as further global brand recognition."
The company said it saw sales fall at UK supermarket retailer Tesco and Norma Kamali during the three months to 28 April, but that the rest of its business saw sales growth of nearly 35%.
"This significant growth is emblematic of the emphasis we have placed on improving our product and brand penetration, developing our partnerships, and refining our direct-to-retail model," Stupp added.
"Particularly gratifying this quarter is the success we have achieved both domestically and abroad for our namesake Cherokee brand," he continued.
"Domestically, Cherokee branded sales at Target made notable strides, with US retail sales up 38% year-over-year. Internationally, we continue to develop, refine, and strengthen our relationship with Tesco in the UK."
Tesco in April agreed to relaunch the Cherokee brand, with a redesigned collection of Cherokee men, women, kids, and baby launching in its stores later this year. This will be followed by an even larger offering at Tesco stores in spring 2013.
"Globally we have seen growth from all of our larger partners including Russia, China, Canada, Latin America, Mexico and Japan," Stupp added.
"Fiscal 2013 will be a year of further development for the Cherokee Group as we continue to make investments and improvements to generate the highest quality product while simultaneously promoting long-term sustainable value for our shareholders."
Global brand management business Cherokee has seen its third-quarter profits jump 98% on the back of rising revenues and lower costs....
UK supermarket retailer Tesco said its clothing division has continued to "outperform the market" as the company recorded a 2.4% increase in sales over the third quarter....
UK retail giant Tesco has confirmed the departure of its group strategy director Michael Fleming....
Top stories on just-style this week include Tesco investing in a new training centre in Bangladesh for garment workers, a group of Hong Kong based buyers assessing sourcing in Bangladesh, and eBay tea...
UK-based retail giant Tesco is taking steps to boost productivity in the Bangladesh apparel industry by investing in a new training centre to teach leadership skills and production techniques to garme...
Supermarket retailer Sainsbury's Plc today (14 November) said its clothing businesses is going "from strength to strength" as it reported a 2.5% rise in first-half profit....
Bangladesh's woven garment exports grew by nearly 10% in the first quarter of the current fiscal year despite the economic slowdown in the European Union (EU) and the US....
- What the EU-Vietnam trade deal means for duties
- Ultimate frontier Myanmar uplifts Bogart Lingerie
- US apparel retailers' January 2016 sales roundup
- US apparel import growth led by Bangladesh
- Esquel backs Chinese Sea Island cotton production
- Sears looks to lift apparel via sourcing changes
- Direct sourcing helps M&S narrow the gap with Next
- Eco-friendly garment factory opens in Bangladesh
- Clothing and sports chains in activewear battle
- Nike accelerates digital strategy with new hire
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Wearable technology: The future market potential for smart garments and e-textiles
- Global market review of denim and jeanswear – forecasts to 2021
- Practical Price Negotiation
- Wearable Technology Market by Product, Application, Type, & Geography - Global Forecast to 2020