Cherokee Global reports flat sales in Q2FY17

For the three months ended July 30, 2016, revenues at Cherokee Global Brands totaled $8.5 million, flat with the prior fiscal’s second quarter. During the reporting quarter, increased revenues for the Cherokee brand in global markets were offset by an expected decrease in North American royalty revenues, as it transitions to new wholesale licensing partners.

Operating income totaled $2.5 million on GAAP basis in the second quarter of fiscal 2017, or 30 per cent of revenues, compared to $3.1 million, or 37 per cent of revenues, in the same quarter of earlier fiscal.

GAAP net income reached $1.5 million in the quarter under review, or $0.17 per diluted share, down from $1.9 million, or $0.22 per diluted share the second quarter of fiscal 2016.

As on July 30, 2016, the company had cash and cash equivalents of $6.6 million vis-à-vis $6.5 million at January 30, 2016, while net debt amounted to $12.7 million and the company’s leverage ratio was 1.5.