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$10.1m Pumpkin Patch profit beats estimates, stock jumps 11%

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.

Comments and questions

The future is online. Can't wait for PPL to be upgraded and valued as a online retailer.

Hold your horses Bongo, and calm that blood pressure. They still have far too much exposure to birdies and mortar to be a true online presence.

But encouraging nevertheless....