US: Cherokee Q2 profit falls on lower sales
- Q2 profit fell 32% to $1.7m
- Net revenues were down 10.7% to $6.7m
- Expenses rose 17.6% to $3.95m
A combination of falling sales and rising costs has pushed second quarter profit down by 32% at ashion brand management company Cherokee Inc.
The firm, which licenses brands such as Sideout and Carole Little, as well as Cherokee which is sold at retailers including Target Stores and Tesco, saw net income fall to $1.7m or $0.20 per share in the three months to 30 July. This compares to $2.5m or $0.28 per share, in the same period last year.
Net revenues were down 10.7% to $6.7m from $7.5m. And SG&A expenses rose to $3.95m, up 17.6% on last year's $3.36m.
"Over the past quarter, we continued to dedicate financial resources to marketing and creative services designed to expand our product offerings, brand visibility, and capabilities to support our partners, brand vision, and direction," explained CEO Henry Stupp.
"We are starting to see the positive impact of our efforts, as evidenced by the back-to-school sell-throughs and holiday commitments. We remain confident in our strategic direction."
Global brand management business Cherokee saw its third quarter profits more than halved following a sales slump for its products at UK retail giant Tesco....
- Fashion fit for the future – strategies for speed
- How PVH is paving the way for connected apparel
- Digitisation to drive new apparel-making models
- Under Armour Lighthouse will disrupt production
- Will new Vietnam wage hinder competitiveness?
- US Q3 in brief - Rocky Brands, Gymboree Corp
- Child refugees found in Turkey apparel factories
- Chinese manufacturer invests $20m in US facility
- Managing change in the move to new tech tools
- Apparel brands "ignoring" refugee abuse in Turkey
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020