Cherokee said that net earnings during the second quarter totalled $4.9m, flat compared to the year ago period, with sales in Tesco stores up 24.5%.

The licensor and brand management company reported net revenues for the three month period of US$11.9m, compared to $12.4m in the comparable period last year.

This year's second quarter revenues did not include any royalty revenues from Mossimo because this contract was sold/terminated during the fourth quarter of fiscal 2007. Mossimo had accounted for $0.8m in revenues in the second quarter of last year.

The company said its second quarter sales benefited from favourable exchange rate comparisons in royalties from most of its international licensees.

Howard Siegel, president of Cherokee, stated: "We are pleased to report revenues from our Cherokee brand totalled $11.3m in our second quarter, up 5.6% over the prior year, and representing our highest level ever for a second quarter.

"In addition, we experienced another record quarter of growth in our international business - which accounted for 53% of our total royalty revenues in the second quarter."

"Cherokee is looking to expand into Asia through its licensing deal with Tesco, the UK's largest selling retailer.

"Royalties from our US licensee, Target Stores, declined by 8.4%, while Tesco (UK and central Europe) grew by 24.5% in our second quarter.

"We are particularly pleased with the many new territories that we have expanded to over the last 12-18 months. They represented approximately 10% of our royalties in the second quarter, and are expected to continue to grow."

New territories include the Czech Republic, Slovakia, Poland and Hungary with Tesco; Mexico with Comercial Mexicana; and South Africa with Pick 'n Pay.

"In addition," Siegel added, "we are looking forward to the launch of our Cherokee brand in several Middle Eastern countries with Fawaz Al Hokair, in Chile and Peru with Falabella's Tottus Stores, and our future launch in China and other Asian territories with Tesco."