Cath Kidston plunges deeper into the red but hails UK, Asia growth
today Dec 13, 2018
British fashion and lifestyle chain Cath Kidston sold more last year, but increased cost pressures caused by the weak pound widened its losses to over £10m.
The vintage-inspired retailer proved particularly popular in the UK and Japan, where sales rose by 5.1% and 5.4% respectively. Overall, sales grew 1.2% to £130.7 million during the year ended 25 March 2018.
The company blamed higher costs for its EBITDA loss, which increased from £8.4m a year earlier.
Now led by CEO Melinda Paraie, who joined the business in June, Cath Kidston closed seven UK stores and opened a further seven as part of a store estate review. Four further stores were relocated to train stations and airports, where footfall levels are more stable.
The chain also signed a franchise deal in China and is planning to open 50 stores in the region over the next five years, according to Retail Gazette. In Japan, where Cath Kidston has been operating its own business since buying out its franchise partner in 2015, 10 further openings are planned for 2019.
CEO Melinda Paraie commented: “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.”
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