A drop in revenues from sales at Target stores contributed to Cherokee Inc. reporting a decline in first quarter net income when compared to a year ago. The Van Nuys-based apparel licensor and brand management company had net income of $4.7 million, or $0.52 per diluted share, on revenues of $11.5 million for the quarter ending May 3. That is a 6 percent drop from the net income of $5 million, or $0.56 per diluted share, on revenues of $12 million for the same period in 2007. Cherokee President Howard Siegel attributed the decline, “largely due to a reduction in the royalty revenues earned from Target.” In 2007, Van Nuys-based Cherokee sold their interest in the Mossimo-Target license. The company expects soft retail sales in the U.S. into 2009 to be offset by continued growth overseas particularly in Brazil and India, Siegel said. As previously announced, Cherokee will pay a $0.75 per share dividend later in the month.
