Cherokee’s First Quarter Earnings Rise

Brand management company Cherokee Inc. had higher earnings for its 2012 fiscal first quarter even though revenues were down. For the quarter that ended April 30, the Van Nuys-based brand management company had net income of $3.3 million, or $0.38 per diluted share, on revenues of $6.9 million. For the same period the previous year, the company had net income of $2.9 million, or $0.33 per diluted share, on revenues of $8.2 million. The company received a refund from the California Franchise Tax Board of nearly $2.2 million during the most recent first quarter, which had a positive impact on net income through a $1.2 million reduction in tax expense. “Now more than ever, we are actively engaged in laying a strong foundation that will stabilize and ultimately grow our business with our existing and future partners,” said Henry Stupp, Cherokee’s CEO. “We are confident in our strategic direction and based upon the positive reactions from our partners, we believe in our ability to execute on these plans.” Jessica Vernabe