Cath Kidston has posted its results for the year to March 25th which show a marginal increase in sales – up 1.2 per cent to £130.7 million. It was a year of twists and turns for the business as it focused on optimising its stable of UK stores, opening in seven locations, closing in seven others and relocating four. The retailer has found stronger demand in UK airports and railway stations than in traditional high street locations and as a result, UK sales grew by 5.1 per cent to account for £91.3 million. However, the business posted an EBITDA loss of £10.5 million, up from the £8.4 million loss for 2017. This has been largely been attributed to currency movements following the Brexit vote.
It also continues to trade well in Asian markets, in particular in Japan where it added four more stores to bring the total to 32. Online demand has also proved to be strong in both the UK and Asia, and plans are for websites in ten new Asian markets. Whereas in China a new franchise arrangement could see Cath Kidston opening up to 50 stores over the next five years.
CEO Melinda Paraie who joined Cath Kidston in June this year said: “During the period the group continued to grow top-line sales, despite significant headwinds in some of the markets in which we operate. The brand clearly continues to resonate with our loyal customer base, particularly in the UK and Asia.”
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