Cherokee Inc. (CHKE) swung to a net loss for the year ended Jan. 28, 2017. The company has made a net loss of $7.93 million, or $ 0.84 a share in the year, against a net profit of $8.43 million, or $0.95 a share in the last year. On the other hand, adjusted net income for the year stood at $7.40 million, or $0.78 a share compared with $9.25 million or $1.04 a share, a year ago.
Revenue during the year grew 17.22 percent to $40.62 million from $34.65 million in the previous year. Operating margin for the year stood at negative 8.37 percent as compared to a positive 38.43 percent for the previous year.
Operating loss for the year was $3.40 million, compared with an operating income of $13.32 million in the previous year.
However, the adjusted operating income for the year stood at $11.88 million compared to $14.55 million in the prior year. At the same time, adjusted operating margin contracted 1274 basis points in the year to 29.25 percent from 41.99 percent in the last year.
Working capital drops significantly
Cherokee Inc. has witnessed a decline in the working capital over the last year. It stood at $0.97 million as at Jan. 28, 2017, down 67.77 percent or $2.04 million from $3.01 million on Jan. 30, 2016. Current ratio was at 1.02 as on Jan. 28, 2017, down from 1.25 on Jan. 30, 2016.
Days sales outstanding went up to 117 days for the year compared with 89 days for the same period last year.
Debt increases substantially
Cherokee Inc. has witnessed an increase in total debt over the last one year. It stood at $42.84 million as on Jan. 28, 2017, up 82.09 percent or $19.31 million from $23.52 million on Jan. 30, 2016. Total debt was 25.80 percent of total assets as on Jan. 28, 2017, compared with 33.34 percent on Jan. 30, 2016. Debt to equity ratio was at 0.59 as on Jan. 28, 2017, up from 0.56 as on Jan. 30, 2016.
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