Cath Kidston's popularity overseas drives sales higher

The appeal of floral chintz overseas has helped drive sales higher at British retailer Cath Kidston.

The homewares and fashion chain, famed for its colourful retro-themed patterns, reported a 20.2% rise in international sales to £55.3m in the year to the end of March, helping group sales to rise 2.4% to £118.5m.

The firm, which has 123 stores across Asia, said Japan was now its biggest market after the UK.

It opened 45 stores during the year.

The rapid rate of expansion means it now has 205 stores overall, with the majority (135) overseas.

It said the UK market, where sales fell 3%, was "challenging".

The report marks the first set of full year results since founder Cath Kidston stepped down from her role as creative director of the eponymous lifestyle label at the end of last year.

Chief executive Kenny Wilson, who took the helm in 2011 after moving on from Claire's Accessories, said it had been a year of "profound change" for the company with "unprecedented investment".

It put money into a new distribution centre in Asia as well as expanding into the Middle East, and bought 27 of its Japanese stores from its franchise partner.

The investments pushed its underlying profits down by 36% to £16m, compared with £25m for the same period a year ago

But Mr Wilson remained upbeat.

"I am very excited about the coming year and our plans to grow the business even further," he said.

The company, which started in London's Holland Park in 1993, is jointly controlled by private equity firm TA Associates and Hong Kong-based Baring Private Equity Asia, which bought a "substantial" stake in the business last year.

Ms Kidston has credited her English country childhood - she grew up in Hampshire - as the inspiration for her English heritage-inspired brand.

She has however admitted that the floral and polka dot patterns are not to everyone's taste, telling Radio 4's Desert Island Discs in 2011: "People either love it and want a little bit of it very much, or want to stab us."