8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  April 15, 2010

CHEROKEE INC.

(Exact name of registrant as specified in its charter)

Delaware	1-18640	95-4182437
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

6835 Valjean

Van Nuys, California 91406

(Address of Principal Executive Offices) (Zip Code)

(818) 908-9868

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On April 15, 2010, Cherokee Inc. issued a press release announcing its financial results for the fiscal quarter and twelve months ended January 30, 2010.  A copy of the press release is attached hereto as Exhibit 99.1.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d)           Exhibits.

Exhibit No.	Description
99.1	Press release of Cherokee Inc., dated April 15, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CHEROKEE INC.
Dated: April 16, 2010		By:	/s/ Russell J. Riopelle
			Russell J. Riopelle
			Chief Financial Officer

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EX-99.1

Exhibit 99.1

Cherokee Inc.	Integrated Corporate Relations, Inc.
6835 Valjean Ave.	12121 Wilshire Blvd. Suite 300
Van Nuys, CA 91406	Los Angeles, CA 90025
(818) 908-9868	(310) 954-1100
Contact: Russell J. Riopelle, Chief Financial Officer	Contact: John Mills

For Immediate Release:

Cherokee Inc. Reports Fourth Quarter and

Fiscal Year 2010 Results

VAN NUYS, CA (April 15, 2010) — Cherokee Inc. (NASDAQ:  CHKE), a leading licensor and global brand management company, today reported financial results for the fourth quarter and fiscal year ended January 30, 2010 (“Fiscal 2010”).

Net revenues for the fourth quarter of Fiscal 2010 totaled $7.6 million, as compared to $6.1 million reported in the fourth quarter of fiscal 2009.  Selling, general and administrative expenses totaled $2.4 million in the fourth quarter of Fiscal 2010, as compared to $2.3 million in the same period last year.  Net earnings were $3.1 million or $0.35 per diluted share, as compared to $2.4 million, or $.27 per diluted share in the same period last year.

For the year ended January 30, 2010, net revenues totaled $32.6 million, as compared to $36.2 million in the same period last year.  Selling, general and administrative expenses totaled $12.2 million in Fiscal 2010 as compared to $13.3 million in the same period last year.  Net earnings totaled $12.6 million, or $1.43 per diluted share, as compared to fiscal 2009 net earnings of $14.3 million, or $1.61 per diluted share.

Russell J. Riopelle, Chief Financial Officer, added, “We once again ended our year in an enviable and solid financial position, generating a significant amount of free cash flow and a balance sheet with $9.4 million in cash and no debt.  This financial strength has allowed us to continue to pay significant dividends to our shareholders.  We look forward to continuing to return excess profits to our shareholders, as conditions permit and at the discretion of our Board of Directors.”

The Company expects to file its form 10-K for the fiscal year ended January 30, 2010 with the SEC on or before April 14, 2010.

About Cherokee Inc.

Cherokee Inc. based in Van Nuys, is a marketer, licensor and manager of a variety of brands it owns (Cherokee, Sideout, Carole Little and others) and represents.  Currently, Cherokee has licensing agreements in a number of categories, including family apparel, fashion accessories and footwear, as well as home furnishings and recreational products.  Premier clients for the Cherokee brand around the world include Target Stores (U.S.), Tesco (U.K., Ireland and certain other European countries), Zellers (Canada), Pick ‘n Pay (South Africa), Grupo Pão de Acucar (Brazil), S.A.C.I. Falabella (Chile and Peru), Arvind Mills (India), Shufersal LTD. (Israel), Comercial Mexicana (Mexico), Eroski (Spain) and RT Mart (Peoples Republic of China).  Premier clients for Cherokee’s other brands include the TJX Companies (U.S., Canada and Europe) for the

Carole Little brands, and Shanghai Bolderway (China) for the Sideout Brand.  Cherokee also placed the Norma Kamali brand with Wal-Mart.

Statements included within this news release that are not historical in nature constitute forward-looking statements for the purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995.  When used, the words “anticipates”, “believes”, “expects”, “may”, “should” and similar expressions are intended to identify such forward-looking statements.  Forward-looking statements included in this press release (including, without limitation, express or implied statements regarding dividend payments, revenues from new licensees and potential future business development) involve known and unknown risk and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such risks and uncertainties, include, but are not limited to, the effect of national, international and regional economic conditions, the financial condition of the apparel industry and the retail industry, the overall level of consumer spending domestically and internationally, the effect of intense competition in the industry in which the Company operates, adverse changes in licensee or consumer acceptance of products bearing the Company’s brands as a result of fashion trends or otherwise, the ability and/or commitment of the Company’s licensees to design, manufacture and market Cherokee, Sideout and Carole Little branded products, the Company’s dependence on a select group of licensees for most of the Company’s revenues, the Company’s dependence on its key management personnel and adverse determinations of claims, liabilities or litigations.  A further list and description of these risk, uncertainties and other matters can be found in the Company’s Annual Report on Form 10-K for Fiscal Year 2010, and in its periodic reports on Forms 10-Q and 8-K (if any).  Undue reliance should not be placed on the forward-looking statements contained herein because some or all of them may turn out to be wrong.  The Company disclaims any intent or obligation to update any of the forward-looking statements contained herein to reflect future events and developments.

(Financial tables follow)

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CHEROKEE INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three months ended				Year ended
	January 30,		January 31,		January 30,		January 31,
	2010		2009		2010		2009
Royalty revenues	$	7,555,000	$	6,121,000	$	32,570,000	$	36,222,000
Selling, general and administrative expenses	2,422,000		2,327,000		12,212,000		13,326,000
Operating income	5,133,000		3,794,000		20,358,000		22,896,000
Other income (expense):
Interest expense	—		—		—		—
Investment and interest income	5,000		24,000		24,000		168,000
Total other expenses, net	5,000		24,000		24,000		168,000
Income before income taxes	5,138,000		3,818,000		20,382,000		23,064,000
Income tax provision	2,028,000		1,436,000		7,811,000		8,718,000
Net income	$	3,110,000	$	2,382,000	$	12,571,000	$	14,346,000
Basic earnings per share	$	0.35	$	0.27	$	1.43	$	1.62
Diluted earnings per share	$	0.35	$	0.27	$	1.43	$	1.61
Cash dividends per share	$	0.50	$	0.50	$	2.00	$	2.50
Weighted average shares outstanding
Basic	8,814,187		8,814,187		8,814,187		8,882,854
Diluted	8,814,187		8,814,187		8,814,187		8,886,592

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CHEROKEE INC.

CONSOLIDATED BALANCE SHEETS

	January 30,		January 31,
	2010		2009
Assets
Current assets:
Cash and cash equivalents	$	9,419,000	$	13,652,000
Receivables	6,939,000		5,475,000
Prepaid expenses and other current assets	101,000		75,000
Taxes receivable	1,271,000		1,609,000
Deferred tax asset	740,000		795,000
Total current assets	18,470,000		21,606,000
Deferred tax asset	630,000		894,000
Property and equipment, net of accumulated depreciation of$800,000 and $725,000, respectively	185,000		210,000
Trademarks, net of accumulated amortization of $10,522,000 and $9,081,000, respectively	7,866,000		9,013,000
Other assets	14,000		14,000
Total assets	$	27,165,000	$	31,737,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and other accrued payables	$	967,000	$	954,000
Accrued compensation payable	2,536,000		2,902,000
Income taxes payable	1,260,000		734,000
Accrued dividends payable	3,349,000		4,407,000
Total current liabilities	8,112,000		8,997,000
Stockholders’ Equity:
Preferred stock, $.02 par value, 1,000,000 shares authorized None issued and outstanding	—		—
Common stock, $.02 par value, 20,000,000 shares authorized, 8,814,187 shares issued and outstanding at January 30, 2010 and at January 31, 2009, respectively	176,000		176,000
Additional paid-in capital	15,187,000		14,875,000
Retained earnings	3,690,000		7,689,000
Stockholders’ equity	19,053,000		22,740,000
Total liabilities and stockholders’ equity	$	27,165,000	$	31,737,000

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