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April 6, 2018
Cherokee Global Brands announced that Target has elected not to renew its license for the Cherokee brand in the U.S.
The partnership will remain in place until the end of the current license agreement on Jan. 31, 2017. Cherokee Global Brands says that it plans to "establish new channels" for Cherokee-branded products in the U.S. that will up and running by fiscal 2018 to make up any shortfall.
"Target has been a great partner for nearly 20 years. Moving forward, Cherokee Global Brands is in a strong position to enter into new platform partnerships that will expand Cherokee's presence in the U.S.," says Henry Stupp, chief executive officer. "Large-scale retailers and wholesalers have frequently expressed interest in the Cherokee brand based on its multi-category relevance and high consumer awareness. In the end, though, consumers make brands successful, and we know that Cherokee has a unique connection with many millions of consumers in the U.S. and around the globe."
As the Target partnership will continue to generate revenue through fiscal 2016 and 2017, Cherokee Global Brands doesn't expect any impact on earnings over the next two years.
"The transitions in our business continue to present exciting opportunities," says Stupp. "We now have a full-spectrum Cherokee platform partnership with Sears Canada after transitioning from a previous partner. We have achieved a similar scale of success with Argos in both the U.K. and Ireland after transitioning from another partner. Retail moves fast, and agility is the hallmark of Cherokee Global Brands' approach as we actively identify and engage with desirable new licensing partners that fully leverage our platform capabilities."
Target's license for the Liz Lange brand will remain in place.
In other news, the company announced that Stupp, alongside chief financial officer Jason Boling, will present at the Inaugural B. Riley & Co. Retail & Consumer Conference this Wednesday in New York City.
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