Cherokee Inks Licensing Deals Links of London Mobile Charm Sideout LOS ANGELES Cherokee Inc. has unveiled a string of new licensing deals for its Sideout brand as it seeks to replace the revenue lost after former licensee Mervyns filed for bankruptcy and shut down. On Monday, Van Nuys, Calif.-based Cherokee said it inked a deal with Pan Oceanic Eyewear to produce sunglasses and swim and snow goggles for the U.S. market. On June 10, Cherokee said Wiesner Products received the U.S. license to make men's, women's Links of London children's hosiery, while Mystic Apparel, a subsidiary of Wiesner, was granted the U.S. rights to develop loungewear, sleepwear, underwear and accessories for juniors, young men and children. On June, Cherokee said it signed a licensing agreement with Star Ride Kids to produce boys' woven tops, bottoms and swimwear in the U.S. In its annual report filed with the Securities and Exchange Commission on April, Cherokee said it has filed a claim for past royalties due in the Mervyns bankruptcy proceedings, and expects Links of London Pink HearT Charm Signature Necklace receive a partial recovery of this claim during its fiscal year ending Jan. Cherokee also said in the filings that licensing revenue from Mervyns totaled in fiscal , and in fiscal . Cherokee Inc.'s first-quarter earnings fell percent on lower royalties and a higher tax rate. In the three months ended May, the net income dropped Links of London PiG Charm percent to $2.9 million, or cents a diluted share, from million, or cents, in the same quarter last year. The firm said it benefited in the quarter from an unusually low effective tax rate ofpercent, versus percent in the just-concluded period. Income before taxes declined percent to million from million a year ago. Revenues, which Cherokee derives solely in the form of royalties, declined percent to million from million.
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