Printer Friendly

CHEROKEE ANNOUNCES THIRD QUARTER RESULTS

 CHEROKEE ANNOUNCES THIRD QUARTER RESULTS
 SUNLAND, Calif., April 15 /PRNewswire/ -- Cary D. Cooper, chief


financial officer of Cherokee Inc. (NASDAQ: CHKE) reported today sales of $52,052,000, operating income of $4,599,000 and a loss applicable to common stock of $3,180,000 or $.36 per share for the third quarter of its 1992 fiscal year which ended Feb. 29, 1992. This compares with sales of $60,977,000, operating income of $8,511,000 and a loss applicable to common stock before extraordinary income of $391,000 or $.06 per share for the third quarter of fiscal 1991. For the nine months ended Feb. 29, 1992, sales were $149,421,000, operating income was $16,266,000 and net loss applicable to common stock was $4,542,000 or $.53 per share. For the nine months ended March 2, 1991, sales were $176,752,000, operating income was $22,356,000 and net loss applicable to common stock before extraordinary income was $1,706,000 or $.28 per share.
 Mr. Cooper noted that the company's liquidity remained excellent, with more than $35 million available from its revolving credit line and the cash proceeds from its June 1991 public offering.
 Robert Margolis, co-chairman and chief executive officer, said, "This year's slowdown in women's apparel sales at retail, especially in California, continues to impact sales in our Apparel Division which were down approximately 20 percent for the nine months. Although the Apparel Division's sales declined 18 percent for the quarter, the division generated operating profit margin of over 10 percent for the 39th consecutive quarter. During the nine months and third quarter, the division maintained gross profit margins in excess of 32 percent. This is a continuing reflection of the division's strategy to cut to order. Although sales to our largest customer were off substantially, sales grew with more than 70 percent of the division's top 50 customers in the third quarter. In addition, the Apparel Division restructured and invested in management by forming six marketing business units, each of which is led by its own merchant executive, including the 'Cherokee Man' unit, which commenced shipping in the third quarter.
 "Our Footwear Division continues to grow and increase its profitability. Sales grew approximately 20 percent in the nine months and gross profit margins also increased. Backlog in the Footwear Division is strongly ahead of last year and recent investments merchandising and selling should lead to continuing growth.
 "The company's operating profit was reduced in the 1992 third quarter by an additional $1,400,000 of investment in marketing and merchandising in order to position the 'Cherokee' brand for future growth. Beginning Jan. 1, 1992, the company launched its 'Make Yourself Comfortable' advertising campaign. The campaign will continue through the year with a mix of television and magazine advertisements that are designed to enhance the sales of Cherokee products for our internal divisions and our 20 domestic licensees by increasing consumer awareness of the value and diversity of Cherokee products.
 "The anticipated benefits of our advertising campaign, our focused business units, and the introduction of new product lines, will enhance the company's prospects as the economy strengthens."
 Cherokee is a designer, manufacturer and marketer of casual apparel and footwear under the Cherokee brand and other brand names. The company also licenses its brand names to 22 domestic and international licensees for a variety of apparel, footwear, accessories and other products.
 CHEROKEE INC.
 Financial Summary
 (In Thousands, Except Per Share Data)
 Three Months Ended Nine Months Ended
 Feb. 29, March 2, Feb. 29, March 2,
 1992 1991 1992 1991
 Net sales $52,052 $60,977 $149,421 $176,752
 Operating
 income 4,599 8,511 16,266 22,356
 Other
 expenses(a) 6,906 7,227 20,329 22,901
 Income (loss)
 before income
 taxes
 (benefit) (2,307) 1,284 (4,063) (545)
 Income taxes
 (benefit) 526 1,415 (352) 409
 Net loss
 applicable
 to common
 stock(b)(c) (3,180) (391) (4,542) (1,706)
 Net loss per
 share(b)(c)(d) ($.36) ($.06) ($.53) ($.28)
 Average shares
 outstanding 8,719,588 6,126,864 8,627,793 5,994,198
 (a) Primarily interest (including non-cash interest of $3,259,000 and $2,823,000 in the three months ended Feb. 29, 1992 and March 2, 1991, respectively, and of $9,558,000 and $8,589,000 in the nine months ended Feb. 29, 1992 and March 2, 1991, respectively), except in the nine months ended March 2, 1991, which includes $1,009,000 of expenses related to a proposed financing which did not occur.
 (b) Before extraordinary gain (net of income taxes) of $1,605,000 or $.26 per share in the three and nine months ended March 2, 1991.
 (c) After non-cash preferred dividends of $347,000 and $260,000 in the three months ended Feb. 29, 1992 and March 2, 1991, respectively, and of $831,000 and $752,000 in the nine months ended Feb. 29, 1992 and March 2, 1991, respectively.
 (d) Per share data has been adjusted for the June 12, 1991 9.4-1 stock split.
 CHEROKEE INC.
 Balance Sheet Data
 Feb. 29, 1992
 (In Thousands)
 Assets:
 Cash and cash equivalents $13,725
 Receivables, net 33,243
 Inventories 41,709
 Other current assets 2,644
 Property, plant & equipment, net 20,134
 Intangibles 115,609
 Other assets 2,715
 Total assets $229,779
 Stockholders' Equity:
 Short-term revolving credit $4,465
 Current maturities of long-term debt 4,088
 Accounts payable and accrued
 expenses and liabilities 13,674
 Long-term debt, net of current maturities 63,352
 Senior subordinated reset notes 103,774
 Other liabilities 19,945
 Total 209,298
 Redeemable preferred stock 14,063
 Common stockholders' equity 6,418
 Total liabilities and common
 stockholders' equity $229,779
 -0- 4/15/92
 /CONTACT: Cary Cooper, CFO of Cherokee, 818-951-1002, ext. 200; or William Coffin of The Financial Relations Board, 818-783-2400, for Cherokee/
 (CHKE) CO: Cherokee Inc. ST: California IN: TEX SU: ERN


JL-KJ -- LA009 -- 8540 04/15/92 09:36 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 15, 1992
Words:1002
Previous Article:PERCEPTRONICS ANNOUNCES $335,000 SALE OF TACTICAL VIDEO MAPPING SOFTWARE
Next Article:CORESTATES ANNOUNCES DEFINITIVE AGREEMENT FOR SALE OF SIGNAL FINANCIAL CORPORATION


Related Articles
CHEROKEE ANNOUNCES SECOND QUARTER OPERATING RESULTS
TOP SOURCE, INC. REPORTS SECOND-QUARTER REVENUES
AETNA Industries, Inc. Reports Third Quarter Results
CHEROKEE UP ON GOOD NEWS.
NEW-LOOK CHEROKEE POSTS GAINS : FORMER APPAREL MAKER FINDS NICHE IN LICENSING, MARKETING.
BRIEFCASE.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters