Cherokee Inc. reported unaudited consolidated earnings results for the second quarter and six months ended August 4, 2018. For the quarter, the company reported revenues of $7,073,000 compared to $7,868,000 a year ago. This $800,000 decrease was due primarily to the expiration or nonrenewal of several licensing agreements, including DTR licenses for Tony Hawk and Liz Lange. Overall, last year's Second Quarter revenues from these terminated licensees and from exiting Flip Flop Shops franchise business was $2.9 million. Operating loss was $2,413,000 compared to $1,112,000 a year ago. Loss from continuing operations before income taxes was $8,002,000 compared to $2,764,000 a year ago. Net loss from continuing operations was $9,053,000 compared to $4,766,000 a year ago. Net loss was $9,053,000 compared to $4,623,000 a year ago. Basic and diluted net loss per share from continuing operations was $0.65 compared to $0.37 a year ago. Basic and diluted net loss per share was $0.65 compared to $0.36 a year ago. Adjusted EBITDA was $3,086,000 compared to $1,568,000 a year ago.

For the six months, the company reported revenues of $12,475,000 compared to $14,685,000 a year ago. Operating loss was $2,575,000 compared to $3,398,000 a year ago. Loss from continuing operations before income taxes was $9,905,000 compared to $6,753,000 a year ago. Net loss from continuing operations was $11,794,000 compared to $8,308,000 a year ago. Net loss was $11,794,000 compared to net income of $7,882,000 a year ago. Basic and diluted net loss per share from continuing operations was $0.84 compared to $0.64 a year ago. Basic and diluted net loss per share was $0.84 compared to $0.61 a year ago. Adjusted EBITDA was $4,132,000 compared to $2,437,000 a year ago.

The company is narrowing its guidance for the fiscal year ending February 2, 2019. For the year, revenues are anticipated to be in the range of $25.0 to $26.5 million. Adjusted EBITDA is expected to be in the range of $85 to $10.0 million.