Cath Kidston profits spike thanks to Asian popularity

Cath Kidston Profits

Full year profits at Cath Kidston have skyrocketed by nearly a third, driven by strong sales in Asian markets.

In the year to March 26 the fashion and homewares retailer posted an underlying profit jump of 27.4 per cent to £9.3 million while turnover jumped nearly eight per cent to £129.2 million, according to The Guardian.

Its UK market still accounts for around two thirds of its sales, seeing like-for-like revenue growth of 3.3 per cent and online sales up 10 per cent largely thanks to the runaway success of its collaborations with Disney.

READ MORE:  Big Interview: Lynn Ritson, Global Ecommerce Director, Cath Kidston

The repurchasing of its Japanese franchise in 2015 has boosted its revenues further as the brand saw strong growth in both Thailand and Japan at nearly 20 per cent.

Furthermore, it has allowed the retailer to create a natural currency hedge helping to “mitigate the effects of the weaker sterling”.

“We‘re having a good time across the board,” said its chief executive Kenny Wilson, who has overseen the retailer since 2011.

“They (in Asia) like pretty, feminine and floral so the aesthetic works very well, but they also like the essential Britishness of Cath Kidston.”

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