$10.1m Pumpkin Patch profit beats estimates, stock jumps 11%
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BUSINESSDESK: Pumpkin Patch, the children’s clothing chain, said full-year profit before one-time items was about $10.1 million, beating estimates as bank debt and inventory levels fell and online sales rose.
The stock jumped 11%.
Analysts had been forecasting full-year reported profit before one-time items of $9.2 million for the year ended July 31. The shares rose 10 cents to $1.01, the highest since May 2, and have soared 42% this year.
The company attributed the result to “solid trading performances over the last three months”. The profit figure excludes non-recurring reorganisation costs.
Both bank debt and inventory are lower than market expectations, it says. Bank debt fell to $55 million from $61 million and inventory dropped to about $62 million from $84 million.
Online sales for the year exceeded $30 million and were up 50% on the previous year “with strong growth for both Pumpkin Patch and Charlie & Me brands across all online markets,” the company says.
It plans to release its full results on September 27.