Cherokee Inc. announced unaudited consolidated earnings results for the fourth quarter and fiscal year from January 28, 2017 to February 3, 2018. For the quarter, the company reported royalty revenues of USD 6,884,000 against USD 8,376,000 a year ago. Operating loss was USD 41,397,000 against income of USD 9,791,000 a year ago. Loss from continuing operations before income taxes was USD 42,793,000 as compared to USD 10,625,000 for the same period last year. Net loss from continuing operations was USD 45,157,000 as compared to USD 11,948,000 a year ago. Net loss was USD 45,585,000 as compared to USD 11,120,000 a year ago. Diluted loss per share from continuing operations was USD 3.23 per share as compared to USD 1.04 per share a year ago.

For the year, the company reported royalty revenues of USD 29,365,000 against USD 34,022,000 a year ago. Operating loss was USD 46,395,000 against income of USD 4,227,000 a year ago. Loss from continuing operations before income taxes was USD 52,831,000 as compared to USD 7,894,000 for the same period last year. Net loss from continuing operations was USD 55,861,000 as compared to USD 8,722,000 a year ago. Net loss was USD 55,989,000 as compared to USD 7,894,000 a year ago. Diluted loss per share from continuing operations was USD 4.16 per share as compared to USD 0.93 per share a year ago. Adjusted EBITDA was USD 3.9 million compared to adjusted EBITDA of USD 14.9 million in the prior year. This decrease was primarily due to the company's transition from its previous DTR license agreement with Target Corporation to a wholesale model, which began contributing to royalty revenues at the beginning of fiscal 2018 and is expected to grow as Cherokee branded products begin to gain traction with new retailers and their customers.

The company provides earnings guidance for fiscal year 2019. For the period, the company expected revenues to range from USD 29 million to USD 31 million. Adjusted EBITDA is expected to range from USD 8 million to USD 10 million.