Target is getting rid of its biggest brands by the year 2020 and Cherokee is one of them.

Target is giving one of its big brands the boot as it looks to refresh its clothing assortment.

Target will not be renewing its license when it expires in January, according to Cherokee Global Brands.The news sent Cherokee's shares tumbling more than 33 percent in after-hours trading.

The brand is responsible for about $1 billion of Target's approximately $73 billion in annual sales.

Stacia Andersen, Target's senior vice president in charge of apparel and accessories, said in the statement that Target has worked with partners like Cherokee to build a reputation for providing guests with high-quality, stylish products for a great value.As Target focuses on signature categories, including kids and baby, we are looking at our business in new ways.We are excited to introduce several new brands in the future and build on an already strong foundation.

Target has a licensing agreement with Cherokee but handles most of the product's design on its own.Target has been carrying the Cherokee brand in children's clothes since 1997.

Target has a licensing agreement with Cherokee for the Liz Lange maternity brand.

Target Chief Executive Brian Cornell is working to breathe new life into Target's so-called signature categories of style, baby, kids and wellness and to regain its cheap-chic reputation after losing some ground to other fast-fashion retailers.

In its most recent annual report, Cherokee said it received 15 million in royalties from Target in the last fiscal year, accounting for 43 percent of its overall revenue.Cherokee said that the end of its agreement with Target would have a negative effect on its business.