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CHEROKEE ANNOUNCES YEAR-END RESULTS

 SUNLAND, Calif., Aug. 27 /PRNewswire/ -- Cherokee Inc. (NASDAQ: CHKEQ) today reported net sales of $157,299,000, an operating loss of $462,000, and net income applicable to Common Stock of $19,348,000, or $2.22 per share, including an extraordinary gain of $82,379,000, or $9.45 per share for the fiscal year ended May 29, 1993. These results compare to net sales of $194,944,000, operating income of $15,797,000 and loss applicable to Common Stock of $9,832,000, or $1.14 per share, for the fiscal year ended May 30, 1992.
 The company believes that a significant portion of the decline in sales and operating income is attributable to the uncertainty during fiscal 1993 on the part of the company's retail customers and suppliers about the company's ability to restructure its debt, which uncertainty was not resolved until the company successfully emerged from Chapter 11 on June 1, 1993.
 Cherokee is a designer, manufacturer and marketer of casual apparel and
footwear under the Cherokee brand. Cherokee also licenses its brand names to 26 domestic and international licensees for a variety of apparel, footwear, accessories and other products.
 CHEROKEE INC.
 Balance Sheet Data
 (In thousands)
 May 29, 1993
 Assets
 Cash and cash equivalents $4,016
 Receivables, net 17,959
 Inventories 27,928
 Other current assets 2,392
 Property, plant & equipment 19,338
 Intangibles 52,989
 Total assets $124,622
 Liabilities and Stockholders' Equity
 Short-term revolving credit $2,196
 Current maturities of long-term debt 4,191
 Accounts payable and accrued expense
 and liabilities 10,398
 Long-term debt, net of current maturities 12,463
 Senior subordinated notes 66,875
 Other liabilities 15,299
 Total liabilities 111,422
 Common stockholders' equity 13,200
 Total liabilities and common stockholders' equity $124,622
 CHEROKEE INC.
 Financial Summary
 (In Thousands, Except Per Share Data)
 Year Ended Three Months Ended
 May 29, May 30, May 29, May 30,
 1993 1992 1993 1992
 Net sales $157,299 $194,944 $39,726 $45,523
 Operating
 (loss) income (462) 15,797 (2,386) (469)
 Other expenses
 (primarily
 interest) 24,143 27,887 4,463 7,558
 Reorganization
 items (a) 40,599 --- 40,599 ---
 Loss before income
 taxes and
 extraordinary
 item (65,204) (12,090) (47,448) (8,027)
 Extraordinary gain
 on extinguishment
 of debt 82,379 --- 82,379 ---
 Net income (loss)
 applicable to
 common stock (b) $19,348 ($9,832) $31,745 ($5,290)
 Net income (loss)
 per share (b)(c) $2.22 ($1.14) $3.74 ($.61)
 Average shares
 outstanding 8,718,522 8,646,899 8,737,180 8,685,845
 (a) Reorganization items include professional fees and expenses of $3,300,000 relating to the company's reorganization and $37,299,000 to record assets and liabilities at their fair market value pursuant to fresh start reporting.
 (b) After preferred dividend of $973,000 in fiscal 1993 and $982,000 in fiscal 1992.
 (c) Fiscal 1993 includes an extraordinary gain of $9.45 per share.
 -0- 8/27/93
 /CONTACT: Cary D. Cooper, CFO of Cherokee, 818-951-1002, ext. 200/
 (CHKEQ)


CO: Cherokee Inc. ST: California IN: TEX SU: ERN

JB-MF -- LA004 -- 6492 08/27/93 09:05 EDT
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Publication:PR Newswire
Date:Aug 27, 1993
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