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 *
Sass Lawrence Marc
   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)
Senior Vice President
(Last)
(First)
(Middle)
6835 VALJEAN AVENUE		 3. Date of Earliest Transaction (Month/Day/Year)
01/19/2007
(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 01/19/2007 01/19/2007 M   4,800 A $ 12.989 4,800 D  
Common stock 01/19/2007 01/19/2007 M   66 A $ 23.12 4,866 D  
Common stock 01/19/2007 01/19/2007 S   1,054 D $ 44.2 3,812 D  
Common stock 01/22/2007 01/22/2007 S   3,812 D $ 44 0 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 $ 12.989             02/05/2005 02/05/2012 Common stock 4,800   4,800 D  
Common stock options $ 23.12             04/07/2005 04/07/2011 Common stock 66   4,866 D  
Common stock options $ 23.12             04/07/2006 04/07/2011 Common stock 1,667   6,533 D  
Common stock options $ 23.12             04/07/2007 04/07/2011 Common stock 1,667   8,200 D  
Common stock options $ 34.62             06/30/2006 06/30/2012 Common stock 3,333   11,533 D  
Common stock options $ 34.62             06/30/2007 06/30/2012 Common Stock 3,333   14,866 D  
Common stock options $ 34.62             06/30/2008 06/30/2012 Common Stock 3,334   18,200 D  
Common stock options $ 39.26             04/07/2007 04/07/2013 Common Stock 833   19,033 D  
Common stock options $ 39.26             04/07/2008 04/07/2013 Common Stock 833   19,866 D  
Common stock options $ 39.26             04/07/2009 04/07/2013 Common Stock 834   20,700 D  
Common stock options $ 23.12 01/19/2007 01/19/2007 M     66 04/07/2005 04/07/2011 Common Stock 66 $ 23.12 20,634 D  
Common stock options $ 12.989 01/19/2007 01/19/2007 M     4,800 02/05/2005 02/05/2012 Common Stock 4,800 $ 12.989 15,834 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Sass Lawrence Marc
6835 VALJEAN AVENUE
VAN NUYS, CA 91406		       Senior Vice President  

Signatures

 Russell J. Riopelle under POA for Lawrence M. Sass   01/22/2007
**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 January 19, 2007 Mr. Sass exercised 4,800 stock options at an exercise price of $12.989, and also exercised 66 stock options at an exercise price of 23.12.  On January 19, 2007 Mr. Sass sold 1,054 of these shares at an average price of $44.20.  On January 22, 2007 Mr. Sass sold the remaining 3,812 of these shares at an average price of $44.00.

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