Cherokee Inc. said Thursday that its profit more than doubled in its fiscal third quarter thanks in part to strong sales at Target stores.
The Sherman Oaks brand licensing company reported net income of $2.1 million (25 cents a share) in the quarter ended Oct. 27, compared with $1 million (12 cents) for the same period a year earlier. Revenue rose 12 percent to $6.7 millon.
The company cited healthy sales at both retail outlets owned by Minneapolis-based Target Brands Inc. and at discount stores operated by Zellers Inc. of Toronto.
Chief Executive Henry Stupp noted Cherokee re-launched its clothing line at stores operated by Tesco Plc of London, and he expects to see improved revenue from the relationship in the first quarter of next year.
“Our ability to maintain top-line growth while carefully managing our bottom line speaks to the global strength of our retail partners, our strong management team, and our exceptional group of designers, innovators and relationship builders,” said Stupp, in a prepared statement.
Shares lost 1 cent, or less than 1 percent, to close at $14.08 on the Nasdaq.