Cherokee Inc., which licenses clothing, footwear and other brand licenses, said Wednesday its fiscal fourth quarter profit dropped 86 percent, partly due to a one-time revenue boost that boosted last year's quarterly results.
For the quarter ended Feb. 2, net income fell to $2.8 million, or 31 cents per share, from $20.7 million, or $2.33 per share in the prior-year quarter.
Revenue, which comes largely from royalties, fell 79 percent to $8.7 million, from $42.2 million in the fourth quarter of 2007.
The company said results in the 2007 quarter were helped by a one-time infusion of $33 million from the company's sale of the Mossimo Finders Agreement, which allowed Cherokee to receive a percentage of all earned royalties received from Mossimo's license with retailer Target Corp. in exchange for finding and brokering the license agreement.
For the fiscal year, profit slid 53 percent to $16.4 million, or $1.84 per share, from $34.8 million, or $3.93 per share in the prior year.
Revenue dropped 46 percent to $41.6 million from $76.6 million in 2007.
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