Cherokee Inc, a leading licensor and global brand management company, announced that its Board of Directors has approved a $0.15 per share increase to its previously announced dividend of $0.60 per share to be paid in December, bringing the total dividend to $0.75 per share for the quarter.
This dividend will be payable on or about December 15, 2006 to shareholders of record on December 1, 2006.
Russell J. Riopelle, CFO of Cherokee, stated: "As a result of our previously announced receipt of $33.9 million today, we felt it was prudent to immediately increase our upcoming December dividend payment.”
“After taking into account the expenses and taxes against this $33.9 million payment, we estimate that our cash balances are well above $20.0 million, and we continue to be debt free. We will use this excess capital to increase value for our shareholders, and continue to look at a variety of opportunities."
The payment of any future dividends will be at the discretion of Cherokee's Board of Directors and will be dependent upon Cherokee's financial condition, results of operations, cash flow, capital requirements and other factors deemed relevant by Cherokee's Board of Directors.
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