FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * STUART SANDI   2. Issuer Name and Ticker or Trading Symbol CHEROKEE INC [CHKE] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Executive Vice President (Last) (First) (Middle) 6835 VALJEAN AVE 3. Date of Earliest Transaction (Month/Day/Year) 10/15/2004 (Street) VAN NUYS, CA 91406 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock               31,085 D   Common Stock 10/15/2004 10/15/2004 M   5,581 A $ 12.989 36,666 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Common stock option

$ 23.12

04/07/2005

04/07/2011

Common Stock

3,333

3,333

D

Common stock option

$ 23.12

04/07/2006

04/07/2011

Common stock

3,333

6,666

D

Common stock option

$ 23.12

04/07/2007

04/07/2011

Common stock

3,334

10,000

D

Common stock option

$ 8.9

05/07/2004

05/07/2011

Common stock

3,334

13,334

D

Common stock option

$ 12.989

02/05/2004

02/05/2012

Common stock

13,333

26,667

D

Common stock option

$ 12.989

02/05/2005

02/05/2012

Common stock

13,334

40,001

D

Common stock option

$ 12.989

02/05/2003

02/05/2012

Common stock

5,581

45,582

D

Common stock option

$ 12.989

10/15/2004

10/15/2004

M

5,581

02/05/2003

02/05/2012

Common stock

5,581

$ 12.989

40,001

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
STUART SANDI 6835 VALJEAN AVE VAN NUYS, CA 91406			Executive Vice President

Signatures

Russell J. Riopelle under POA for Sandi Stuart		10/15/2004
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Remarks: On 10/15/2004 Ms. Stuart exercised 5,581 stock options to purchase CHKE common stock at an exercise price of $12.989 per share.  As a result of this transaction Ms. Stuart increased her ownership of CHKE common stock by 5,581 shares.  Post-transactions, Ms. Stuart's ownership of CHKE common stock totals 36,666 shares.

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