Cath Kidston has reported a £10.5m EBITDA loss for the 52 weeks to 25 March 2018, citing “upwards pressure on costs” and “tough underlying market conditions” for its poor performance.
The lifestyle retailer posted an operating loss of £19.6m in the period, despite expanding its store portfolio internationally. In year to March 2017, the retailer had made a restated loss of £8.4m.
Nine stores were opened in Japan, and 10 more are planned for the coming financial year. The retailer also signed a new franchise deal with China with the potential to add 50 new stores in the next five years.
Total group sales grew by 1.2% and UK sales increased by 5.1%, including a 20.3% growth in online sales.
Cath Kidston refinanced in June 2018 and raised £40m of funding from equity sources to repay its bank debt and fund future growth.
As of 25 March 2018 the group had 219 stores worldwide across the UK, Japan, China, Spain, Asia and the Middle East.