Overseas demand drives Cath Kidston back into profit

The firm said it turned an operating profit of £800,000 in the 12 months to March 26, compared with a loss of £2.1 million the year before.

Sales rose almost 8 per cent to £129.2 million, helped by a 20 per cent increase in international sales to £42.3 million.

The company benefited from its decision to buy back its Japanese subsidiary, with the growth of the brand in the Asian region providing a currency hedge after the collapse in sterling.

In the UK, sales grew 3.3 per cent to £87.7 million, while overall group earnings shot up 27 per cent to £9.3 million.

Chief executive Kenny Wilson hailed a “strong year” for the group, adding: “Our growing international business helps mitigate the effects of weaker sterling and we have already made good progress in growing our international footprint even further.”

The group said it will be entering Latin America later this year, with stores due to open in Argentina and Mexico, while it is continuing to expand in Japan with another 10 new stores in the pipeline.

Mr Wilson said the brand had widened its customer base in the UK and overseas, and he expected this trend to continue this year thanks to “very exciting product campaigns”.

He added that its Disney collections and Future Florals range were “amongst our most successful product initiatives ever”, with many items selling out in hours.

“The breadth of our customer base, in terms of the wide age range we serve and the diversity of our product range, has always acted to protect Cath Kidston,” he said.

Private equity firm Baring Asia last year took full control of the retailer, which was founded in 1993 by Cath Kidston herself.

Baring’s knowledge of the Asian market has been pivotal in helping grow the brand in the region, where the company has more than 100 stores.

The company has 219 stores worldwide, including ones in Harrogate, Sheffield, Leeds and York.

Its former chairman, Peter Higgins, is a Yorkshireman and attended Bradford Grammar School.