Jul 11, 2017
Cherokee Global Brands posts $11.1 million Q1 revenues
Jul 11, 2017
Cherokee Global Brands has recorded consolidated revenue, including the contribution from Hi-Tec, of $11.1 million for the first quarter of 2018 that ended on April 29, 2017.
On a year-over-year comparable basis, Cherokee Global Brands' revenue, excluding Hi-Tec, were $5.2 million, a decrease of 51.4 per cent from $10.7 million in the prior year period.
The year-over-year decline is largely due to the decrease in North America revenues related to the Cherokee brand as the company continues its transition to new wholesale licensees.
During the quarter, some of the decrease was offset by global revenue increases, particularly in Europe, Asia and South Africa as the demand for Cherokee-branded products continues to grow.
"Operationally, fiscal 2018 is off to a solid start," said Henry Stupp, CEO of Cherokee Global Brands.
"During the first quarter, we continued to make progress in diversifying our global points of distribution and building upon the relevance of our high-equity brands through category expansion and new format initiatives. Today, our business model is more balanced and demonstrative of our go-forward strategy whereby revenue contribution will be more evenly split across brand, product category and geography."
"The Spring 2017 launch of our Cherokee brand in US continues to track positively and deliver positive initial sell-through. As we continue to ramp our new wholesale licensing relationships for the Cherokee brand in US, we expect revenue contribution more consistent with the broader retail industry, which will be reflected in our second half 2018 financial performance. Outside of US, we remain very pleased with the growing consumer awareness and demand for the brands iconic lifestyle assortment of products across the globe," added Stupp.
GAAP selling, general and administrative expenses were $10.2 million, compared to $6.4 million in the prior-year period.
The year-over-year increase was primarily due to the inclusion of operating costs for Hi-Tec of $3.6 million which includes accounting, legal, integration and restructuring costs incurred during the first quarter.
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