Cath Kidston losses widen due to weak pound

The clothing and homeware retailer has suffered a group EBITDA loss of £10.5m in the year to March 2018, following a loss of £8.4m in 2017. The company blames its widened losses on a fall in the value of the pound after the EU referendum.

Sales increased, however, with the business racking up a 1.2% rise in year-on-year group sales, which reached £130.7m. UK sales, which were boosted by online transactions, rose by 5.1% to £91.3m.

Cath Kidston’s UK store count remained at steady at 68.

The lifestyle brand continues to expand in Asia. Nine new company-owned stores have opened in Japan, taking the total number to 32, and there are plans to open 10 more shops this year. Following a new franchise agreement, the business also hopes to open 50 new stores in China over the next five years.

Cath Kidston’s new chief executive, Melissa Paraie, who joined the business in June, said: “During the period the group continued to grow top-line sales, despite significant headwinds in some of the markets in which we operate. We are particularly pleased with the significant growth in ecommerce sales in both Japan and the UK, where a strong performance on Black Friday contributed to our best ever week online.”