April 6, 2018
FBR expects the brand management firm to post gains in the coming months with strong performances from Tony Hawk, Hi-Tec and other brands.
Although the Cherokee brand is still feeling the impact of losing Target, management believes that the new Cherokee products are in approximately 2,000 stores, with 5,000 doors targeted for FYE18, with many offering a wider selection than Target. The brand is also set to begin shipping women’s product this year. Additionally, the Cherokee brand was impacted by the bankruptcy of Sears Canada; however, the brand began to sell on Amazon earlier this year.
Meanwhile, Hi-Tec continues to be a strong performer for the company, with a host of apparel lines planned to roll out in Europe. The company is also planning a North American rollout of apparel in summer 2018. Further, the brand integration is now almost fully complete following its acquisition in late 2016.
For FlipFlop Shops, FBR reports that management believes it has weeded out weak franchisees and will continue to focus on partners who can open multiple locations. According to FBR, the brand is being positioned for a return to profitable growth.
Finally, Tony Hawk’s second quarter revenues were up 17 percent year-over-year and reflects the company’s decision to move the brand to a non-exclusive status with Kohl’s, which has enabled the brand to enter additional retailers and online.
Other brands in the Cherokee Global Brands portfolio include Liz Lange, Magnum and Everyday California, among others.
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