On Dec. 7, brand licensor and marketer Cherokee Brands
- Revenue grew 5.3% to $8.8 million. Royalty revenue from Target
(NYSE:TGT) , Cherokee's largest licensee, fell 1.8%, but international revenue grew 16.4%. - The operating margin fell thanks to higher SG&A costs from increased payroll and stock option expenses.
- Net income grew a modest 0.9%, but diluted earnings were flat as shares outstanding increased slightly.
- Cherokee is a five-star stock, our highest rating, in Motley Fool CAPS. Of 53 players, 50 think it will outperform the market. Got an opinion? Bring it to CAPS!
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$8,801 |
$8,359 |
5.3% |
|
Net Profit |
$3,281 |
$3,253 |
0.9% |
|
EPS |
$0.37 |
$0.37 |
0.0% |
|
Diluted Shares |
8,845 |
8,816 |
0.3% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Operating Margin |
60.7% |
63.7% |
(3.0) |
|
Net Margin |
37.3% |
38.9% |
(1.6) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$10,484 |
$12,200 |
(14.1%) |
|
Accounts Rec. |
$8,235 |
$7,940 |
3.7% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$676 |
$618 |
9.4% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Fools will have to wait until Cherokee files its 10-Q for juicy cash flow details.
Find out why Fools always follow the money.
Comparable companies:
-
Mossimo
(NASDAQ:MOSS) -
Iconix Brands
(NASDAQ:ICON)
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Free Cash Flow
- Foolish Fundamentals: Return on Invested Capital
- Foolish Fundamentals: The Cash Flow Statement
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
