Cherokee Inc. (NASDAQ:CHKE) Q1 2020 Earnings Conference Call - Final Transcript

Jun 18, 2019 • 04:30 pm ET

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Cherokee Inc. (NASDAQ:CHKE) Q1 2020 Earnings Conference Call - Final Transcript

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Executive
Henry Stupp

leverages our design services model into new revenue streams. Our unique 360-degree platform positions us as a full service resource for each of our retail and wholesale licensees. In addition, our recent shift from a direct-to-retail licensing model to one that encompasses wholesale and retail licensing partnerships enables us to grow our own brands and create and develop brands and products for others. We've recently introduced these new revenue streams and we are in advanced discussions to expand our design service relationships into numerous markets with the leading retailers.

From a strategic perspective, as we continue to grow and enhance Cherokee Global Brands for future success, we have begun to add new skill sets to our Board of Directors. In the beginning of May, we announced the appointment of Patti Johnson as Chair of our Audit Committee. Patti's prior experience managing the financial and accounting operations for large global retail operations, such as Charlotte Russe and Old Navy has proven to be a strong addition to our team in her short tenure on our Board. Then, just last week, we were thrilled to announce the appointment of current Director, Evan Hengel, as Chairman of the Board. Evan has been a member of Cherokee's Board of Directors since October 2018 and his extensive business and financial experience, including M&A and restructuring in the apparel and consumer industries has and will continue to significantly contribute to our Board.

And last but certainly not least from marketing and branding perspective, as I mentioned last quarter, at the end of June, we are excited to reconfirm that Cherokee Global Brands will officially be re-branded as Apex Global Brands. Towards the end of June, Apex Global Brands will begin trading on NASDAQ under the ticker symbol, APEX, A-P-E-X. At that time, we shall transition from Cherokee Global Brands to Apex Global Brands, both in name and ticker symbol, as we mark the expansion of our brand portfolio from a mono-branded company to a house of high equity lifestyle brands, and we leverage our platform synergies and position ourselves as a true thought leader in the global expansion of our brands and services.

Leveraging the unique Apex platform, our own brands will be able to grow into new categories and markets without limitation. At the same time, our retail partners and licensees will be able to expand their global reach and relevance, as our retail licensee partners are now collaborating to market a vastly expanded assortment of products. We believe that our shareholders will witness the transformation of our Company into a streamlined organization that can leverage our current and future brands distinct strengths to reach new levels of profitability.

We believe we are heading in the right direction, cutting costs to improve shareholder returns, appointing key individuals to strengthen our strategic direction and rebranding to reflect the changing world of retail. We are now better positioned to deepen our relationships with retailers and to help our partners deliver more product and introduce new categories faster