Cath Kidston's profits bloom as 'essential Britishness' sells worldwide

Cath Kidston won over UK shoppers with its trademark floral tablecloths, tea towels and crockery but the latest figures show the British brand is also going down a storm overseas.

The homewares retailer said underlying profits had surged 27.4% to £9.3m in the year to 26 March. Turnover increased by almost 8% to £129.2m thanks to a near 20% increase in overseas sales as it enjoyed success in Asian markets including Japan and Thailand.

“We’re having a good time across the board,” said its chief executive, Kenny Wilson. “They [in Asia] like pretty, feminine and floral so the aesthetic works very well, but they also like the essential Britishness of Cath Kidston.”

During the year the company benefited from the 2015 decision to buy back the Japanese franchise operation, with the growth of the overseas business providing a natural currency hedge after last summer’s Brexit vote hit to sterling.

“Our growing international business helps mitigate the effects of weaker sterling,” Wilson said.

He added that the company had shifted a meaningful amount of its product sourcing out of China and into countries such as Vietnam and Cambodia as it sought to mitigate the need for price rises. In the current season the price of some products has increased by up to 5%.

Wilson said its UK chain, which accounts for about two-thirds of sales, had enjoyed like-for-like revenue growth of 3.3% thanks to a successful tie-up with Disney as well as its future florals collection, a range of handbags in more muted colours designed to appeal to office workers. Online sales were up more than 10%.

Cath Kidston founded the eponymous business, opening the first store in Holland Park, west London, in 1993. It would become renowned for its bags, accessories and clothing in a range of floral designs. The designer, who still owns about 11% of the chain, stepped down as creative director in 2014. Last year Baring Private Equity Asia bought out the other investors to become the controlling shareholder.