Cherokee Inc. Reports Lower Q2 Earnings

Cherokee Inc.’s royalty revenues and net income dropped for this year’s second quarter due to challenges in its international market, the Van Nuys-based global licensor and brand management company announced. The company had net income of $2.5 million, or $0.28 per diluted share, on royalty revenues of $7.5 million for the second quarter ending July 31, 2010. That is a decrease from the same quarter last year when the company had net income of $2.9 million, or $0.32 per diluted share, on royalty revenues of $8.1 million. The company ended the quarter with cash and cash equivalents of $7.3 million, net receivables of $6.7 million and no debt. “Slight increases in our U.S. royalties were offset by less favorable exchange rates and lower royalties from certain international accounts,” said Howard Siegel, the company’s chief operating officer. Jessica Selva