Cherokee Inc. Extends Retail License With Zellers
Van Nuys, Calif.-based Cherokee Inc., maker of men’s, women’s and children’s apparel, footwear and accessories, announced plans last week to extend its Canadian licensing agreement for an additional five years with Toronto-based Zellers Inc.
Founded in 1973, Cherokee first entered an agreement with Zellers in September 1997 to license men’s, women’s and kids’ apparel and recently expanded its license to include camping gear and luggage.
Sales of Cherokee brand products exceeded $248 million Canadian ($160 million U.S.) for fiscal year 2001, said a company spokeswoman.
In a recent press statement, Cherokee chairman and chief executive officer Robert Margolis said, “Cherokee has become one of the largest and fastest-growing family lifestyle brands in Canada. We are very fortunate to have Zellers as our partner in Canada and look forward to many more years of continued success.”
Last December, Cherokee reported that third-quarter revenue increased 11 percent to $5.5 million from $5 million in the prior year, and earnings per share increased 9.5 percent to $0.23 during the same period.
Currently, the company holds contracts with 14 licensees for apparel, accessories, camping gear, luggage, cosmetics and footwear. It also produces Side Out, an active sportswear brand for Mervyn’s, the Forzani Group in Canada and Bob’s Sporting Goods on the East Coast.
Last month, Cherokee entered an exclusive agreement with Hot Kiss for strategic licensing of junior apparel throughout Europe, Asia and South America. Additionally, the company signed an exclusive agreement with Burbank, Calif.-based DIC Entertainment to license products for “Liberty’s Kids,” a children’s program that will air on PBS in Fall 2002.
Zellers is no stranger to retail either. The 72-year-old company operates over 320 discount department stores throughout Canada and is a division of Canadian retail giant Hudson’s Bay Co.
President and chief operating officer Thomas Haig said in a recent press statement that the company is pleased with the consumers’ response to the Cherokee brand in Canada, noting, “Private and captive brands play a large role in differentiating ourselves from the competition and are key in meeting the needs and wants of our core customer.” —Claudia Figueroa
