844161--4/17/2007--CHEROKEE_INC

related topics

{interest, director, officer}

{personnel, key, retain}

{property, intellectual, protect}

{stock, price, share}

{competitive, industry, competition}

Our business is subject to intense competition. Our business is largely dependent on Royalties from two licensees, Target Stores and Tesco, which accounted for 42% and 32%, respectively of our consolidated licensing revenues in fiscal 2007 (excluding the one-time $33.0 million in revenues from our sale of the Mossimo Finder s Agreement). We are dependent on our intellectual property and we cannot assure you that we will be able to successfully protect our rights. We are dependent on our key management personnel. The management agreement with our Chief Executive Officer contains provisions that provide for a substantial cash payment to our Chief Executive Officer upon our breach or termination of the management agreement. We may not pay dividends regularly in the future.

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