Cherokee Inc., a global licensor and brand management company, said total royalty revenues for the second quarter ended July 31, 2010 were $7.5 million, as compared to $8.1 million in the comparable period last year. Cherokee’s operating expenses for the second quarter totaled $3.36 million, which was slightly greater than the $3.34 million in the comparable period last year. Cherokee’s net income for the second quarter decreased by a total of $400,000 to $2.5 million or 28 cents per diluted share, as compared to $2.9 million, or 32 cents per diluted share in the comparable period last year. The company ended the quarter with cash and cash equivalents of $7.3 million, net receivables of $6.7 million and no debt.
Russell J. Riopelle, Chief Financial Officer, commented, “We finished the quarter in another strong cash position and a debt-free balance sheet. During our Second Quarter we paid a $0.38 per share dividend in June, and announced our September dividend of $0.38 per share.”
Howard Siegel, COO of Cherokee, stated, “Slight increases in our U.S. royalties were offset by less favorable exchange rates and lower royalties from certain international accounts.”
