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Cherokee plunges after surprise FQ1 loss

Published 07/07/2017, 09:09 AM
© Reuters.  Cherokee plunges after surprise FQ1 loss
APEX
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  • Shares of Cherokee (NASDAQ:CHKE) are down 24% in premarket trading after the company posted a FQ1 loss instead of the profitable quarter anticipated by analysts. Royalty revenue plunged during the quarter as a shift to wholesales licenses was executed.
  • The company is looking for a bounce back in the second half.
  • "The theme of domestic expansion continues with our Tony Hawk brand where, in partnership with our new U.S. wholesale licensees, we have secured orders for an expanded distribution of Hawk products starting this July," notes Cherokee's CEO.
  • Investors have their eyes on Cherokee's lack of compliance with the terms of a credit facility with Cerberus. Cherokee says it's negotiating with Cerberus.
  • Previously: Cherokee misses by $0.20, beats on revenue (July 6)
  • Now read: Cherokee Inc . 2018 Q1 - Results - Earnings Call Slides


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