VAN NUYS, Calif.--(BUSINESS WIRE)--Cherokee Inc. (NASDAQ: CHKE), a leading licensor and global brand management company, announced today that its Board of Directors approved the distribution of a quarterly dividend to stockholders of $0.20 per common share. The dividend will be payable on or about September 15, 2011, to stockholders of record as of September 1, 2011.
The payment of any future dividends will be at the discretion of Cherokee’s Board of Directors and will be dependent upon Cherokee’s financial condition, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by Cherokee’s Board of Directors. Cherokee has paid dividends to its stockholders on a consecutive quarterly basis since December 2003. Including this upcoming dividend, since 1996, the Company will have paid out approximately $215.8 million in dividends and distributions to its stockholders.
In addition, the Company announced that during the second quarter ended July 31, 2011, it has repurchased a total of approximately 24,000 shares of its common stock in the open market, at an average price of $16.46 per share, for a total cash consideration of approximately $395,000.
The stock repurchase transaction was made pursuant to the stock repurchase program under which the Board of Directors of Cherokee Inc. had authorized the repurchase of up to 800,000 shares of the Company’s common stock from time to time in the open market at prevailing market prices or in privately negotiated transactions.
“The quarterly dividend as well as the repurchase of our Company’s shares, reflects both management and the Board of Directors’ continued confidence in the strength and future of our business,” said Henry Stupp, Chief Executive Officer. “Our strong balance sheet and positive free cash flow allows us to return capital to stockholders, while remaining committed to executing on our key strategic initiatives to increase shareholder value through driving profitable growth in the future.”
About Cherokee Inc.
Cherokee Inc. is a global marketer and manager of a portfolio of LIFESTYLE BRANDS it owns and represents in multiple consumer product categories and sectors around the world. The Company has license agreements with premier retailers and manufacturers covering over 30 countries around the world including Target Stores (U.S.), Tesco (U.K., Ireland and certain Central European countries), Zellers (Canada), RT-Mart (Peoples Republic of China), Pick ‘n Pay (South Africa), Falabella (Chile, Peru and Colombia), Arvind Mills (India and certain Middle Eastern countries), Shufersal LTD. (Israel), Comercial Mexicana (Mexico), Eroski (Spain), Nishimatsuya (Japan), Magnit (Russia) and the TJX Companies (U.S., Canada and Europe).
Statements included within this news release may contain t forward-looking statements for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. When used, the words “anticipates,” “believes,” “expects,” “may,” “should” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements included in this press release (including, without limitation, express or implied statements regarding potential future business development and the anticipated credit facility) involve known and unknown risk and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties, include, but are not limited to, the risks that the credit facility will not be closed on the terms anticipate in the commitment letter, the effect of global economic conditions, the financial condition of the apparel and retail industry, adverse changes in licensee or consumer acceptance of products bearing the Company’s brands the ability and/or commitment of the Company’s licensees to design, manufacture and market Cherokee, Sideout and Carole Little branded products, the Company’s dependence on a select group of licensees for most of the Company’s revenues and the Company’s dependence on its key management personnel. The risks included here are not exhaustive. A further list and description of these risks, uncertainties and other matters can be found in the Company’s Annual Report on Form 10-K for Fiscal Year 2010, and in its periodic reports on Forms 10-Q and 8-K (if any). Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intent or obligation to update any of the forward-looking statements contained herein to reflect future events and developments.