Cherokee Global Brands says Target's decision to discontinue its operations in Canada will not have a material affect on its financial results.

Cherokee, which holds a licensing deal with Target Corp, said Canada has represented less than 1.8% of total revenues for the brand.

Target Corp announced plans to discontinue its Canada operations yesterday (15 January), through its indirect subsidiary, Target Canada Co, which employs around 17,600 staff across 133 stores.

"Despite the closing of Target Canada stores," said Cherokee Global Brands CEO Henry Stupp, "our company remains very well-positioned for continued top-line and bottom-line growth going forward including organic growth with our existing global partners, the addition of new partners, and growth through additional brand acquisitions."

Stupp added that Target's decision should yield positive long-term results for the Cherokee brand stateside as it focuses its efforts in growing its brick-and-mortar and e-commerce businesses.

"Our increasingly diversified revenue stream marked by best-in-class partners in over 50 countries puts Cherokee Global Brands in a position of strength as we enter fiscal 2016."

The company said it believes it will have "multiple opportunities" to engage a new licensee of the Cherokee brand in Canada.