Acquisition of Tony Hawk brand acquisition and continued global organic growth of the Cherokee brand led Cherokee Global Brands, a global marketer of lifestyle brands to post a 17% and 16% in net sales and net income, respectively for the second fiscal quarter ended August 2, 2014.
Revenues for the second quarter of 2014 increased 17% to $8.8 million compared with $7.5 million in second quarter of 2013 which the apparel marketer attributed to acquisition of Tony Hawk brand and continued global organic growth of the Cherokee brand.
However, SG&A expenses rose 19% to $5.1 million in the second quarter of 2014 from $4.2 million in the prior-year period. Cherokee said the hike in SG&A was due mainly to expenses related to recently acquired Tony Hawk Brand and additional marketing to support its brands.
Net income totalled $2.3 million, or $0.27 per diluted share in the quarter under review against $1.9 million, or $0.23 per diluted share, in the same quarter of 2013. As of August 2, 2014, Cherokee had cash and cash equivalents of $4.1 million, compared to $3.6 million as on February 1, 2014.
"We are very pleased with our top and bottom-line results. Cherokee Brand revenues for our key global partners in Asia, Latin America and Canada have all continued to perform solidly as well as our Liz Lange brand on HSN”, said Cherokee CEO, Henry Stupp. “
Henry Stupp added, “We fully expect the second half will continue to show positive developments through the execution of our strategic growth plan including the identification of new brand acquisitions and organic growth geographically”. (AR)
