Cath Kidston reports annual loss of 10.5 million pounds

For the year to March 25, 2018, Cath Kidston has reported EBITDA loss of 10.5 million pounds (13.5 million dollars), while operating loss for the period amounted to 19.6 million pounds (25.3 million dollars). The company, in its accounts filed with the Companies House UK, attributed the rise in losses to “adverse impact of decline of sterling following EU referendum in June 2016.”

The group sales however saw an increase of 1.2 percent to 130.7 million pounds (169 million dollars), while sales on comparable basis rose by 3.6 percent. Sales in the UK increased by 5.1 percent including a 20.3 percent growth in online sales to 91.3 million pounds (118 million dollars). International sales on comparable basis were up 0.5 percent with sales in Japan rising by 5.4 percent including online sales growth of 163 percent at constant currency, partially offset by weakness in the Middle East. Cath Kidston opened nine stores in Japan during the year and 10 more are planned for this financial year.

The company also signed a new franchise deal with China with the potential to add 50 new stores over the next five years. While its operations in China were transitioned from an owned and operated model to a franchise model, the company also closed its retail business in France and Spain, which the company said contributed to 6.9 percent decline in international sales, which it expects to be temporary since international sales in the first quarter of 2019 have returned to positive.

In June 2018, Cath Kidston completed refinancing of its business and raised 40 million pounds in funding from equity sources to repay its bank debt, provide additional liquidity and fund future growth.

At March 25, 2018 Cath Kidston operated 219 stores worldwide, including 87 stores in the UK, 32 in Japan and one store in China. Additionally, the company said, three concessions in Spain and 99 stores in Asia and the Middle East are operated by the franchise partners.

Picture:Facebook/Cath Kidston