Cherokee Global Brands: Q3 GAAP net loss reaches 2.5 mn dollars

Cherokee Global Brands’ consolidated GAAP revenues in the third quarter were 11 million dollars, comprised of royalty revenues and indirect product sales. Royalty revenues were 7.9 million dollars compared with 6.5 million dollars in the prior year period. For the nine month period, GAAP consolidated revenues were 36.1 million dollars, comprised of royalty revenues and indirect product sales. Royalty revenues were 22.7 million dollars compared with 25.6 million dollars in the prior year period. GAAP net loss for the third quarter was 2.5 million dollars or 0.18 dollar per diluted share, compared to 873 thousand dollars or 0.10 dollars per diluted share, in the prior-year period.

“We’re pleased to share meaningful progress across key business and financial objectives, including the successful amendment of our existing loan agreement with Cerberus,” commented Henry Stupp, the company’s CEO in a media statement, adding, “With the financial and operational integration of Hi-Tec behind us, we look forward to advancing our strategic vision for Cherokee Global Brands. Most notably, we’re pleased to announce a pan European license agreement of the Cherokee brand in over 15,000 locations and 29 countries beginning early Fall 2018.”

Fiscal 2018 third quarter financial results

GAAP operating loss for the third quarter totalled 1.7 million dollars, compared with 1.2 million dollars in the prior-year period. GAAP operating loss for the nine-month period was 4.7 million dollars compared with GAAP operating income of 5.6 million dollars in the prior-year period.

Non-GAAP operating income for the third quarter was 541 thousand dollars, compared with 1.2 million dollars in the prior-year period. Non-GAAP operating income for the nine-month period was 1.4 million dollars compared with 9.4 million dollars in the prior-year period. For the nine-month period, GAAP net loss was 10.4 million dollars or 0.79 dollar per diluted share, compared to GAAP net income of 3.2 million dollars or 0.37 dollar per diluted share in the prior-year period.

Non-GAAP net loss for the third quarter was 740 thousand dollars or 0.05 dollar per diluted share compared to Non-GAAP net income of around 700 thousand dollars or 0.08 dollar per diluted share, in the prior-year period. For the nine-month period, non-GAAP net loss was 2.2 million dollars or 0.17 dollar per diluted share. This compares to non-GAAP net income of 5.6 million dollars or 0.64 dollar per diluted share in the prior-year period.

Adjusted EBITDA for the quarter was 928 thousand dollars compared to 1.6 million dollars in the prior-year period. For the nine-month period, the company reported an adjusted EBITDA of 2.8 million dollars compared to adjusted EBITDA of 10.5 million dollars in the prior-year period.

Cherokee Global Brands announces fiscal 2018 outlook

The company said that it is adjusting its previously issued guidance for the fiscal year 2018 ending February 3, 2018. Gross profit is expected to be in the range of 34-37 million dollars, adjusted EBITDA in the range of 6-9 million dollars. For the fiscal 2019 year ending February 2, 2019, the company said, gross profit is anticipated to be in the range of 34-39 million dollars and adjusted EBITDA in the range of 7-11 million dollars.

Picture:Facebook/Hi-Tec USA