The unstable consumer market and the lead up to the retail calendar’s biggest month are topics up for discussion this afternoon, when Auckland-based children’s clothing company Pumpkin Patch holds its annual meeting.

This year has been particularly hard on retail outlets as consumer spending has slowed down significantly and consumer debt has reduced. October was a harsh month for retailers all round. The volatile weather has been blamed for the sluggish movement of newly released spring lines.

Analysts have forecast Christmas and the lead up to the spending frenzy will deliver conservative results. At the meeting today, the company will consider  directors for appointment.

The company is also expected to discuss its international arm and its expectations for 2010. In September, the Pumpkin Patch announced a net loss of $26.74 million after factoring in impairments and one-off costs from stores that closed in the US.

Net profit after tax (including the US stores and non-recurring items) was down 13.9% at $14.7 million. The company announced a dividend payment of 4.5 cents per share, compared with 3.5 cents in 2008, which was paid out on October 22.

In New Zealand, sales were down marginally at 1.9% after increased promotion in 2009 and four outlet stores opened since the beginning of 2008. Australian sales fared better in a soft retail market, with trade up 2.5% on 2008.

The company reduced net bank debt by 77% to $18 million, with around $36 million of mark to market gains resulting in immediate debt reduction following a change in the company's foreign exchange portfolio towards the end of 2008.