Revenue during the quarter dropped 19.80 percent to $6.50 million from $8.10 million in the previous year period. Operating margin for the quarter stood at negative 18.63 percent as compared to a positive 30.51 percent for the previous year period.

Operating loss for the quarter was $1.21 million, compared with an operating income of $2.47 million in the previous year period.

However, the adjusted operating income for the quarter stood at $1.24 million compared to $3.09 million in the prior year period.

"Fiscal 2017 has been a productive year for Cherokee Global Brands," stated Henry Stupp, chief executive officer. "We have made considerable progress against our strategic plan on a number of fronts including accelerating our global growth, managing the transition of the Cherokee brand in the U.S., and welcoming new, high-equity brands into our portfolio, such as the Hi-Tec and Magnum brands. Our ability to successfully navigate through today's dynamic retail environment is a testament to the power of our 360-degree platform, our portfolio of diversified brands, and the strong partner relationships and exceptional leadership team that support our global aspirations."

For financial year 2017, Cherokee Global Brands projects revenue to be $32 million. The company forecasts diluted earnings per share to be $0.76.

Days sales outstanding went up to 121 days for the quarter compared with 103 days for the same period last year.

Debt comes down significantly
Cherokee Global Brands Global Brands has recorded a decline in total debt over the last one year. It stood at $17.15 million as on Oct. 29, 2016, down 33.10 percent or $8.49 million from $25.64 million on Oct. 31, 2015. Total debt was 24.44 percent of total assets as on Oct. 29, 2016, compared with 36.08 percent on Oct. 31, 2015. Debt to equity ratio was at 0.37 as on Oct. 29, 2016, down from 0.64 as on Oct. 31, 2015.