Global licensor and brand management company Cherokee Inc., has reported its highest ever revenue for the first quarter of fiscal 2007, ended April 29. Net revenues for the first quarter rose 0.1% to $13.228 million, compared with revenues of $13.213 million in the comparable period last year.

However, first quarter revenues included just $0.8 million attributable to Mossimo Inc., as compared with the $1.2 million reported for the first quarter of last year, despite the fact that retail sales of Mossimo branded products at Target grew during the first quarter. Cherokee believes that Mossimo Inc. has made an unauthorised deduction of $900,000 of royalties that are owed for sales during the first quarter. Nonetheless, Cherokee currently expects to receive this $900,000 of royalty revenues during its second quarter of fiscal 2007 concurrent with the closing of Iconix Brand Group's acquisition of Mossimo, and it will be recognised as royalty revenues at the time such funds are received. As a consequence, Cherokee's first quarter royalty revenues were essentially flat when compared to the first quarter of last year.

Net earnings for the three months ended April 29 decreased by 2.9% to $5.9 million compared with $6.1 million in the year ago period.