Cherokee Reports Income of $2.38 Million for Year

Cherokee Group, a Sunland apparel concern that was acquired by a private investor group in May, reported net income for its fiscal year that ended May 27 of $2.38 million, down from $12.7 million the previous year.

Cherokee, which was bought for $174 million by Green Acquisition Co., which included certain members of Cherokee’s management, also said its annual sales rose 8% to $169.4 million from $156.2 million.

The company blamed much of the profit decline on costs associated with the acquisition, including a one-time, $5.6-million charge related to Cherokee’s settlement of stock options held by various Cherokee executives and others.