Cherokee Inc., a licenser of clothing brands, on Wednesday posted a smaller profit for the first quarter, as royalty revenue from discount chain Target Corp. declined.
Cherokee posted a net profit of $4.7 million, or 52 cents per share, compared with a year-earlier profit of $5 million, or 56 cents per share. Royalty revenue fell to $11.5 million from $12 million a year earlier.
The company said domestic royalty revenue fell $1.2 million, mostly due to lower royalties from Target. The decline was partially offset by growing international royalties.
Cherokee shares fell 3.7 percent to $24.98. The stock dipped as low as $24.26, its lowest level since October 2004.
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