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Cherokee Global Brands annual turnover declines 8.8 percent

Cherokee Global Brands said that consolidated revenues for the fourth quarter, including the contribution from Hi-Tec, were 15 million dollars. On a year-over-year comparable basis, Cherokee Global Brand revenues, excluding Hi-Tec, were 7.2 million dollars, a decrease of 8.8 percent from 7.8 million dollars in the prior year period.

The company said, year-over-year decline is largely due to the decrease in North America revenues related to the Cherokee brand as the company continues to transition to new wholesale licensees. During the quarter, some of the decrease was offset by global revenue increases, particularly in South America, Europe, Japan and South Africa.

Fourth quarter and full year financial highlights

Hi-Tec revenues totaled 7.8 million dollars in the fourth quarter and included 6.6 million dollars in indirect product sales related to distribution and government contracts, as well as 1.2 million dollars in licensing revenues stemming from new and existing licensing deals for the Hi-Tec portfolio of brands. Gross profit from Hi-Tec indirect product sales was 1.5 million dollars and is inclusive of 5.1 million dollars in cost of goods sold.

Consolidated revenues for the year, including the contribution from Hi-Tec, were 40.6 million dollars. On a year-over-year comparable basis, Cherokee Global Brand revenues, excluding Hi-Tec, were 32.8 million dollars, compared with 34.7 million dollars in the prior year. Cherokee-brand royalties earned by Target in fiscal 2017 were 10.5 million dollars, a decrease of 4.4 million dollars over the prior year.

GAAP operating loss for the fourth quarter was 9 million dollars, compared with GAAP operating income of 1.9 million dollars in the prior-year period. GAAP operating loss for fiscal 2017 totaled 3.4 million dollars, compared with GAAP operating income of 13.3 million dollars in the prior year.

Non-GAAP operating income for the quarter was 2.5 million dollars or 16.5 percent of revenues, compared with 2.3 million dollars or 29.9 percent of revenues, in the prior year period. Adjusted EBITDA for the fourth quarter was 2.9 million dollars compared to 2.7 million dollars in the prior year period. Adjusted EBITDA for fiscal 2017 was 13.4 million dollars compared to 15.9 million dollars in the in the prior year.

Picture:Cherokee Global Brands website