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 * Nawrocki Mark   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) Vice President - Marketing (Last) (First) (Middle) 6835 VALJEAN AVENUE 3. Date of Earliest Transaction (Month/Day/Year) 12/11/2006 (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               0 D   Common Stock 12/11/2006 12/11/2006 M   8,000 A $ 33.98 8,000 D   Common Stock 12/11/2006 12/11/2006 S   2,952 D $ 42.544 5,048 D   Common Stock 12/12/2006 12/12/2006 S   5,048 D $ 42.619 0 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

Employee Common Stock option

$ 33.98

06/14/2006

06/13/2012

Common Stock

8,333

8,333

D

Employee Common Stock option

$ 33.98

06/14/2007

06/13/2012

Common Stock

8,333

16,666

D

Employee Common Stock option

$ 33.98

06/14/2008

06/13/2012

Common Stock

8,334

25,000

D

Employee Common Stock option

$ 39.26

04/07/2007

04/06/2013

Common Stock

8,333

33,333

D

Employee Common Stock option

$ 39.26

04/07/2008

04/06/2013

Common Stock

8,333

41,666

D

Employee Common Stock option

$ 39.26

04/07/2009

04/06/2013

Common Stock

8,334

50,000

D

Employee Common Stock Option

$ 33.98

12/11/2006

12/11/2006

M

8,000

06/14/2006

06/13/2012

Common Stock

8,000

$ 33.98

42,000

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Nawrocki Mark 6835 VALJEAN AVENUE VAN NUYS, CA 91406			Vice President - Marketing

Signatures

Russell J. Riopelle under POA for Mark Nawrocki		12/15/2006
**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 December 11, 2006 Mark Nawrocki exercised stock options to acquire 8,000 shares of common stock of Cherokee Inc. at an exercise price of $33.98.  He then sold (i) 2,952 of these shares at an average price of $42.544 on December 11, 2006; and (ii) 5,048 of these shares at an average price of $42.619 on December 12, 2006.

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