US: Cherokee Q4 profit rises despite sales fall
- 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.
Help test our new apparel sourcing tool.
While the focus on emerging markets for the big international clothing companies has traditionally been to view them as outsourcing opportunities, there are a lot of people with a lot of money in thes...
Moves last week by the Indian government to open the country's multi-brand retail sector to foreign investment have been hailed as everything from a "historic decision" to a "big bang" reform. But obs...
The degree to which retailers tailor their offer to local markets emerged as a key theme at the Wold Retail Congress yesterday (19 September) - and it seems there are as many different strategies as t...
Wal-Mart Stores said it intends to reduce its capital expenditure in fiscal 2014, but emphasised it will add roughly the same amount of retail space as this year....
Leading apparel brands including Gap, Adidas and H&M Hennes & Mauritz are looking at ways to reduce pollution within their supply chains following accusations that they were purchasing clothing from s...
Stronger sales and lower markdowns has helped US discount retailer Family Dollar to today (3 October) book a rise in fourth quarter and full-year net profit....
A GBP1bn (US$1.6bn) investment plan launched earlier this year to help turn around its domestic business has contributed to a decline in first-half profit at Tesco Plc, the UK's largest retailer....
A sourcing deal inked more than two years ago between Li & Fung and Wal-Mart Stores has been replaced by a new agreement that allows the global supply chain manager to offer a range of new services to...
- What TTIP might mean for US, EU textiles & apparel
- Four steps to reduce product defects
- Unlocks for the future fashion sourcing landscape
- Geo-political uncertainty and how to survive it
- Adidas raises the bar for North America sales
- H&M, VF Corp and Levi among most ethical companies
- US Q4 in brief – PVH Corp, J Crew, Perry Ellis
- Sears has "substantial doubt" of future
- Vietnam limits hazardous chemicals in apparel
- PVH Corp to acquire e-commerce retailer True&Co
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Outdoor performance apparel 2016: A broader perspective