In addition, during fiscal 2007, the Company experienced higher payroll and bonus expenses, as well as increased travel and marketing expenses related to the business development and growth of the Company's international business. Also, in compliance with the adoption of SFAS 123R during fiscal 2007, the Company incurred stock option compensation expenses of $705,000, as compared to zero for fiscal 2006.
"We are particularly pleased with the continued strong growth of our international revenues, which now represent over 42% of our ongoing business," said Howard Siegel, President.
"We believe that during this decade, a few elite brands will emerge with global dominance -- `World Brands.' Our presence in North America, Europe and Eastern Europe provides a platform for the Cherokee brand's continued global growth and recognition. We will continue to explore new opportunities in other parts of Europe, South America and Asia as our primary objective is to establish Cherokee as the leading consumer lifestyle brand worldwide."
"During fiscal year 2007, although our royalty revenues from domestic licensees Target and Mervyn's were down compared to last year, we were pleased to achieve royalty growth from many of our international licensees, while further strengthening our balance sheet as a result of the $33.0 million received from the sale of the Mossimo Finder's Agreement," said Russell J. Riopelle, Chief Financial Officer.
"We paid out $22.4 million in dividends to our shareholders during fiscal 2007, and we remain committed to enhancing shareholder value through continued revenue growth and increased profitability. In addition, we continue to prudently assess potential future acquisitions to further enhance our operations."
While the payment of future quarterly dividends will be at the discretion of Cherokee's Board of Directors, the Company expects to continue to generate excess cash flow from ongoing license agreements.
The Company expects to file its form 10-K for the fiscal year ended February 3, 2007, with the SEC on or before April 17, 2007.
marketing@alchempro.com
