Cath Kidston has announced that full-year losses widened to £14.2m from £2.5m the year before as a result of “substantial investment” in the business’s expansion in Asia.
Underlying EBITDA fell by 36% to £16m for the year to March 29 as the firm invested in marketing, people and infrastructure including a new distribution centre in Asia to support future growth in the region.
Group sales increased by 2.4% to £118.5m fuelled by international retail sales, which increased 20% to £55.3m.
During the year, 45 stores opened, taking the total to 205 – 70 in the UK and 135 overseas.
Four new shops opened in the UK, one in China and 40 franchise stores worldwide, including the first stores in the Middle East. The group now has 123 stores across Asia.
Kenny Wilson, chief executive of Cath Kidston, said: “This has been a year of profound change for the company with unprecedented investment. The rise in international retail sales is evidence of the success of the strategy to further globalise the brand. We have grown group sales despite a challenging UK consumer environment, while investing significantly in people, adding a new group commercial director and a general manager in Japan, together with further investments in marketing to support future growth.”