Despite an increase in revenues, Cherokee Inc., a Sherman Oaks-based brand management company, reported a decrease in income in the first quarter.
For the quarter ended April 28, the company saw a net income of $2.1 million or $.25 per diluted share, a 36 percent decrease from $3.3 million or $.38 per diluted share in the prior year period.
Net revenues increased 8.7 percent to $7.5 million from $6.9 million in the same period last year.
This year, Cherokee announced several new developments which aimed to improve the company’s position in international markets. In March, it announced its partnership with Russian retailer Magnit.
Most recently, Cherokee announced plans to re-launch its branded clothing line at Tesco, a UK retail chain. The re-launch is a component of Cherokee’s plans to boost business with the retail giant as the brand has struggled to win over Tesco customers in past years.
“Consistent with the long-term strategic plan introduced last quarter, we have continued to make investments in our brands and partnerships; we have begun to see meaningful increases with some of our key partners as well as further global brand recognition,” said CEO Henry Stupp in a prepared statement. “Despite the declines from Tesco and Norma Kamali during the first quarter, we reported a nearly 35 percent growth in the balance of our business over the past three months. This significant growth is emblematic of the emphasis we have placed on improving our product and brand penetration, developing our partnerships, and refining our direct-to-retail model.”