• Fourth-quarter sales fell 18.9% to $6m
  • Net income rose to $1.5m
  • Full-year net income declined 2.5% to $7.5m
  • Sales fell 16.8% to $25.6m

Brand management company Cherokee has seen its fourth-quarter and full-year sales fall following declines in the sale of Cherokee branded products at Tesco and the non-renewal of its Norma Kamali license with Wal-Mart.

Over the quarter ended 28 January, the company saw sales decline 18.9% to $6m. However net income increased to $1.5m from $44,000 in the same period of the prior year.

For the full-year, net income was down 2.5% to $7.5m, as sales declined 16.8% to $25.6m.

"We saw a meaningful increase in our global brand recognition despite declines from Tesco's sale of Cherokee branded products and the non-renewal of the Norma Kamali license with Wal-Mart," said Cherokee group CEO Henry Stupp.

"I am pleased to note that Cherokee products are now available in more countries than they have been in prior years and, except for the declines that we have experienced in the United Kingdom and certain countries within Central Europe, we are seeing an increase in the sale of Cherokee products in most of our major markets.

"This bodes well for our partners, our brands, and the new business methods we have instituted."

Stupp said retailer Target, its first Cherokee partner, generated a 26% hike in sales "resulting in a corresponding royalty revenue increase of nearly 10%".

"After experiencing positive results for both back-to-school and Holiday 2011, early indications bode well for this positive momentum continuing into our new fiscal year.

"We are excited for further growth at Nishimatsuya in Japan and Magnit in Russia which both recently launched the Cherokee brand. We also look forward to our new collaboration with Tesco in fiscal 2013, representing a resurgence of our business in the UK and Central Europe," added Stupp.