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CHEROKEE ANNOUNCES SECOND QUARTER OPERATING RESULTS

 CHEROKEE ANNOUNCES SECOND QUARTER OPERATING RESULTS
 SUNLAND, Calif., Jan. 14 /PRNewswire/ -- Cherokee Inc.


(NASDAQ: CHKE) today reported sales of $43,524,000, operating income of $4,215,000 and a loss applicable to common stock of $1,426,000 or $.16 per share for the second quarter of its 1992 fiscal year which ended Nov. 30, 1991. This compares with sales of $53,273,000, operating income of $5,250,000 and a loss applicable to common stock of $1,207,000 or $.20 per share for the second quarter of fiscal 1991.
 For the six months ended Nov. 30, 1991, sales were $97,369,000, operating income was $11,667,000 and net loss applicable to common stock was $878,000 or $.16 per share. During the six months ended Dec. 1, 1990, sales were $115,775,000, operating income was $13,845,000 and net loss applicable to common stock was $823,000 or $.22 per share.
 Robert Margolis, co-chairman and chief executive officer, said that "Cherokee performed well considering the very difficult national economic environment, and the very poor retail climate which existed during 1991." Margolis noted that Cherokee was able to improve its gross margins in the face of declining sales and that Cherokee was able to reduce its sales, general and administrative costs by more than 13 percent. Margolis attributed both achievements to the company's flexible manufacturing system and to its disciplined operating strategies.
 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 26 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 Six months ended
 Nov. 30, Dec. 1, Nov. 30, Dec. 1,
 1991 1990 1991 1990
 Net sales $43,524 $53,273 $97,369 $115,775
 Operating income 4,215 5,250 11,667 13,845
 Other expenses (a) 6,695 7,351 13,423 15,674
 Loss before income
 taxes (2,480) (2,101) (1,756) (1,829)
 Income tax benefit (1,297) (1,156) (878) (1,006)
 Net loss applicable
 to common stock (b) (1,426) (1,207) (1,362) (1,315)
 Net loss per share
 (b) (c) ($.16) ($.20) ($.16) ($.22)
 Average shares
 outstanding 8,732,922 6,126,864 8,581,823 5,927,865
 (a) Primarily interest, except in the six months ended Dec. 1, 1990, which includes $1,009,000 of expenses related to a proposed financing which did not occur.
 (b) After preferred dividends of $243,000 and $262,000 in the three months ended Nov. 30, 1991, and Dec. 1, 1990, respectively, and of $484,000 and $492,000 in the six months ended Nov. 30, 1991, and Dec. 1, 1990, respectively.
 (c) Per share data has been adjusted for the June 12, 1991, 9.4-1 stock split.
 Balance Sheet Data
 (In thousands)
 Nov. 30, 1991
 Assets:
 Cash and cash equivalents $14,499
 Receivables, net 23,816
 Inventories 43,654
 Other current assets 3,660
 Property, plant & equipment, net 19,702
 Intangibles 116,389
 Other assets 2,916
 Total assets $224,636
 Liabilities and stockholders' equity:
 Short-term revolving credit $3,612
 Current maturities of long-term debt 3,945
 Accounts payable and accrued expenses
 and liabilities 11,321
 Long-term debt net of current maturities 60,304
 Senior subordinated reset notes 102,222
 Other liabilities 20,007
 Total 201,411
 Redeemable preferred stock 13,502
 Common stockholders' equity 9,723
 Total liabilities and common
 stockholders' equity $224,636
 -0- 1/14/92
 /CONTACT: Cary Cooper, CFO of Cherokee Inc., 818-951-1002, ext. 200; or William F. Coffin of the Financial Relations Board, 818-783-2400, for Cherokee Inc./
 (CHKE) CO: Cherokee Inc. ST: California IN: SU: ERN


DM-JL -- LA007 -- 9433 01/14/92 09:45 EST
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Date:Jan 14, 1992
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