Net earnings for the fourth quarter were $4.4 million, or $0.49 per diluted share, an increase of 8.2 percent compared to net income of $4.0 million, or $0.46 per diluted share, in the same period last year. For the year ended January 28, 2006, net earnings increased to $18.3 million, or $2.07 per diluted share, as compared to $17.2 million, or $1.97 per diluted share in fiscal 2005.
Selling, general and administrative expenses for the fourth quarter were $3.0 million, which is above the $2.7 million in the same period last year. For the year ended January 28, 2006, selling, general and administrative expenses were $12.8 million, which is above the $11.8 million incurred in fiscal 2005. In fiscal 2006, the Company experienced higher payroll and bonus expenses, as well as increased travel and marketing expenses related to the business development and growth of our international business.
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.
Approximately 34 percent of the Company's royalty revenues for fiscal 2006 are from the Company's international licensees, and hence are subject to currency fluctuations.
The Company expects to file its form 10-K for the fiscal year ended January 28, 2006, with the SEC on or before April 13, 2006.
Cherokee Inc, based in Van Nuys, is a marketer, licensor and manager of a variety of brands it owns (Cherokee, Sideout, Carole Little and others) and represents. Currently, Cherokee has licensing agreements in a number of categories, including family apparel, fashion accessories and footwear, as well as home furnishings and recreational products.
marketing@alchempro.com
