• 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."