Cherokee is changing its name to Apex Global Brands and “mining” its heritage IP for new licensing extensions, CEO Henry Stupp said in releasing earnings for Q4 ended Feb. 2.

Heritage brands being targeted for new licensing deals include Tony Hawk, Cherokee and Sideout — the latter originally a men’s beachwear brand that Cherokee acquired in 1997, but which has been “idling for a number of years,” Stupp said. Licensee Batra has introduced a Tony Hawk Signature apparel line in Europe that is aimed at higher-end retailers. New Cherokee heritage-related products will play to its history in footwear, apparel and accessories, Stupp said.

Cherokee also wants to expand licensing for the Hi-Tec, Magnum and Interceptor footwear labels, all of which it acquired in buying Hi-Tec 2016.

The company also is providing design services for its namesake brand to a major Chinese retailer under a deal that generated $800,000 in revenue in the quarter and $1.4 million for the year, CFO Steve Brink said.

Cherokee’s name change is part of a re-branding effort that includes a new web site and is designed to highlight some of Cherokee’s new businesses, and to underscore a broadening beyond the DTRs that were once central to the company, Stupp said.

Overall, net loss in the quarter narrowed to $595,000 from $45.1 million a year earlier, which included $12.1 million in impairment charges tied to the Tony Hawk and Hawk Signature brands. Q4 revenue fell 11.5% to $6.1 million, due largely to the loss of DTRs for Tony Hawk (Kohl’s), Liz Lange (Target) and Cherokee (Target), which generated a combined $1.5 million in royalty revenue a year earlier.

For the year, revenue declined 17% to $24.4 million, 47% ($11.6 million) of which came from the Hi-Tec brands, up from 33% ($9.7 million) the previous year. The Cherokee brand accounted for about 40% ($9.7 million) of sales, up from 38% a year earlier, due partly to the European licensing deal with Batra.

Contact:

Cherokee, Steve Brink, CFO, 818-908-9868