Onetime Gain Boosts Cherokee Into Black for ’93

Cherokee Inc., a Sunland-based women’s clothing maker that recently emerged from bankruptcy reorganization, reported profits for its fiscal fourth quarter and year ended May 29.

But without a onetime gain of $82 million from the extinguishment of debt, Cherokee said it would have posted large losses in the latest periods. In addition to reorganization costs, the company said its financial results in fiscal 1993 were hurt by uncertainty among its customers and suppliers because of the bankruptcy.

In the latest three months, Cherokee earned $31.7 million, in contrast with a loss of $5.29 million a year before. The profit came on a 13% decline in revenue, to $39.7 million from $45.5 million.

For the year, the company earned $19.3 million, while its revenue fell 19% to $157.3 million. In fiscal 1992, Cherokee posted a $9.83-million net loss on $194.9 million in revenue.