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Cherokee reports revenue rise of 22 percent in FY15

By Prachi Singh

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Business |REPORT

Cherokee Global Brands, reporting its results for the fourth quarter and full year fiscal 2015 ended January 31, 2015 said that the revenues for the fourth quarter increased 18 percent to 7.5 million dollars, compared with 6.4 million dollars in the prior-year period. For the twelve month period, revenues increased 22 percent to 35 million dollars, compared with 28.6 million dollars in the prior-year period.

The increase in revenues during the fourth quarter has been attributed to Tony Hawk signature brands and continued organic growth of Cherokee and Liz Lange branded products domestically and internationally. Operating income totaled 2.7 million dollars, an improvement of 89 percent, compared with 1.4 million dollars in the prior-year period. Operating margin was 36 percent against 22 percent in the prior year period, demonstrating the significantly increased leverage in the business. Net income totaled 1.7 million dollars, or 0.19 dollars per diluted share, compared with 1 million dollars, or 0.11 dollars per diluted share, in the prior-year period.

“Fiscal 2015 was a very positive year for Cherokee Global Brands during which we successfully executed against our long-term business strategy by growing both organically and through acquisitions. Revenues for the full year improved 22 percent and EPS increased nearly 60 percent on a year-over-year basis. In addition, we continued to carefully manage our expenses, generating improved operating and EBITDA leverage,” expressed Henry Stupp, Director and Chief Executive Officer.

“With Cherokee’s high brand awareness in the UK, and the availability of our product development, marketing assets, and globally approved supply chain, Argos will be able to launch Cherokee branded products for the entire family online, in catalog and at more than 750 stores across the UK and Ireland this fall. Additionally, we are very confident that we will be able to ensure the availability of Cherokee branded product for adults and kids with a new retail partner in Canada prior to our year end,” Stupp added.

Operating income for the full year, totaled 15.4 million dollars, an improvement of 54 percent, compared with 10 million dollars in the prior-year period. Operating margin was 44 percent versus 35 percent in the prior-year period. Net income totaled 9.8 million dollars, or 1.15 dollars per diluted share, compared with 6.1 million dollars, or 0.72 dollars per diluted share, in the prior-year period.

Cherokee Global Brands