Ownership Submission
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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(Print or Type Responses)
1. Name and Address of Reporting Person *
RIOPELLE RUSSELL J
   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)
Chief Financial Officer
(Last)
(First)
(Middle)
6835 VALJEAN AVENUE		 3. Date of Earliest Transaction (Month/Day/Year)
05/26/2006
(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               6,852 D  
Common Stock 05/26/2006 05/26/2006 M   4,852 A $ 20.61 11,704 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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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 Options $ 20.61             02/09/2005 02/09/2014 Common Stock 1,918   1,918 D  
Common Stock Options $ 20.61             02/09/2006 02/09/2014 Common Stock 6,770   8,688 D  
Common Stock Options $ 20.61             02/09/2007 02/09/2014 Common Stock 6,770   15,458 D  
Common Stock Options $ 23.12             04/07/2005 04/07/2011 Common Stock 9,896   25,354 D  
Common Stock Options $ 23.12             04/07/2006 04/07/2011 Common Stock 9,897   35,251 D  
Common Stock Options $ 23.12             04/07/2007 04/07/2011 Common Stock 9,897   45,148 D  
Common Stock Options $ 34.62             06/30/2006 06/30/2012 Common Stock 3,333   48,481 D  
Common Stock Options $ 34.62             06/30/2007 06/30/2012 Common Stock 3,333   51,814 D  
Common Stock Options $ 34.62             06/30/2008 06/30/2012 Common Stock 3,334   55,148 D  
Commn Stock Options $ 39.26             04/07/2007 04/07/2013 Common Stock 5,214   60,362 D  
Common Stock Options $ 39.26             04/07/2008 04/07/2013 Common Stock 5,215   65,577 D  
Common Stock Options $ 39.26             04/07/2009 04/07/2013 Common Stock 5,215   70,792 D  
Common Stock Options $ 20.61 05/26/2006 05/26/2006 M   4,852   02/09/2006 02/09/2014 Common Stock 4,852 $ 20.61 65,940 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
RIOPELLE RUSSELL J
6835 VALJEAN AVENUE
VAN NUYS, CA 91406		       Chief Financial Officer  

Signatures

 Russell J. Riopelle   05/26/2006
**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 May 26, 2006 Mr. Riopelle exercised 4,852 stock options (all ISOs) at an exercise price of $20.61 per share.

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