Pumpkin Patch takes $12m charge after latest round of write downs

Pumpkin Patch chief executive Di Humphries (TV3)
Pumpkin Patch 12-month price history (NZX.com)

Pumpkin Patch [NZX: PPL], which slashed its earnings forecast earlier this year, will take a $12 million charge to write down the value of stores and IT software, while posting underlying profit in line with guidance.

The children's clothing chain said a provision for the write down of IT software and store assets will be reflected in its 2014 results, taking total reorganisation costs to $12 million. Post-tax earnings before reorganisation costs were between $1 million and $2 million in the 12 months ended July 31, in line with its May guidance of between $1 million and $3 million.

The Auckland-based retailer embarked on a strategic review in a bid to revive its ailing performance, focusing on its store footprint, stock levels, and an IT system upgrade.

Pumpkin Patch said early trading in the 2015 financial year was "encouraging" with summer season collections "positively received."

The shares were unchanged at 42 cents yesterday, and have slumped 53 percent this year.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7288 0.0009 0.12%
AUD 0.9526 -0.0004 -0.04%
EUR 0.6475 0.0006 0.09%
GBP 0.5609 -0.0002 -0.04%
HKD 5.6506 0.0059 0.10%
JPY 73.3850 0.3120 0.43%

Commods

Commodity Price Change Time
Gold Index 1337.3 -0.160 2016-09-26T00:
Oil Brent 47.9 1.450 2016-09-26T00:
Oil Nymex 45.9 1.400 2016-09-26T00:
Silver Index 19.6 -0.210 2016-09-26T00:

Indices

Symbol Open High Last %
NZX 50 7264.9 7265.2 7264.9 -0.44%
NASDAQ 5275.7 5282.3 5305.8 -0.91%
DAX 10555.2 10560.8 10627.0 -2.19%
DJI 18217.8 18217.8 18261.5 -0.91%
FTSE 6909.4 6909.6 6909.4 -1.32%
HKSE 23356.0 23469.3 23317.9 0.54%
NI225 16390.9 16414.5 16544.6 -0.90%
ASX 5431.4 5431.4 5431.4 -0.71%