Cherokee Inc, a leading licensor and global brand management company, reported financial results for the fourth quarter and fiscal year ended February 3, 2007.
Fiscal Year 2007 Results: • As a result of our "World Branding" strategy, international revenues for all of fiscal 2007 increased by 25% to total $18.4 million, representing 42% of our total revenues in fiscal 2007 (excluding the $33.0 million received from the sale of our Mossimo Finder's Agreement) • Worldwide annual retail sales of Cherokee-branded products exceeded $2.5 billion • Worldwide annual retail sales of all owned and represented brands during fiscal 2007, including Cherokee, exceeded $4.0 billion. • Pre-tax income totaled $58.0 million for the year. • Ended the year with cash and cash equivalents of $44.6 million on balance sheet, receivables of $7.2 million, and zero debt. • Paid dividends of $0.75 per share in December 2006 and March 2007, and during fiscal 2007 paid out $2.55 per share, or approximately $22.4 million in dividends to shareholders.
Net revenues for the fourth quarter of fiscal 2007 increased to total $42.2 million, primarily due to the one-time revenues of $33.0 million from the Company's sale of the Mossimo Finders Agreement, as compared to revenues of $9.9 million in the fourth quarter of fiscal 2006. For the year ended February 3, 2007, net revenues rose to $76.6 million, which included the one-time payment of $33.0 million from the sale of the Mossimo Finder's Agreement, as compared to $42.7 million last year.
Net earnings for the fourth quarter were $20.7 million, or $2.33 per diluted share, compared to net income of $4.4 million, or $0.49 per diluted share, in the same period last year. For the year ended February 3, 2007, net earnings increased to $34.8 million, or $3.93 per diluted share, as compared to $18.3 million, or $2.07 per diluted share, in fiscal 2006.
"Fiscal 2007 marks the completion of another record year for the Cherokee Group," commented Robert Margolis, Chairman and CEO of Cherokee Inc. "The continued growth of the Cherokee franchise is a testament to the strength of the Cherokee brand, our talented Cherokee staff and our strong retail partners worldwide. We are proud to deliver such strong results for our shareholders."
Selling, general and administrative expenses for the fourth quarter increased to $8.4 million, from $3.0 million in the same period last year, primarily due to the inclusion of approximately $5.0 million of one-time, deal-related expenses from the sale of the Mossimo Finder's Agreement. For the year ended February 3, 2007, selling, general and administrative expenses increased to $19.5 million, from $12.8 million in fiscal 2006, primarily due to the $5.0 million of one-time, deal-related expenses from the sale of the Mossimo Finder's Agreement.
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