Russell Riopelle, CFO, added, "We're disappointed that Mossimo Inc has made an unauthorized deduction of $900,000 to the royalty revenues due to Cherokee, but we currently expect to receive payment of this $900,000 in our second quarter and will recognize it when we receive it.”
“Furthermore, although our royalty revenues from Target were down 9.7 percent in our first quarter as compared to the first quarter of last year, we experienced royalty revenue growth of 34.4 percent for our Cherokee brand from our international licensees -- primarily Tesco and Zellers. We finished the quarter with $9.2 million of cash, $12.6 million of net receivables and no debt. In addition to the $0.60 per share dividend paid to shareholders in March, we will pay another dividend of $0.60 per share on June 15th, evidencing continued execution of our goal of returning profits to shareholders," he added.
Howard Siegel, President of Cherokee, stated, "We are pleased to report another record quarter of growth in our international royalty revenues as we continue to successfully expand and diversify the business and pursue our 'world brand' strategy for Cherokee. We have begun to realize revenues from the sales of Cherokee branded products in Central Europe (Slovakia, Poland and the Czech Republic) this quarter and those volumes, along with the continued growth in the UK and Ireland, were a major contributor to our increased revenues.”
“In addition, our partners in Canada and Mexico also reported strong growth, as did our Carole Little brands licensee, TJX Companies, in the US. We continue to be excited by the growth opportunities for the brands we own and represent as we seek worldwide licensing agreements,” he added.
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, it 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
