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)

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

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7804 -0.0029 -0.37%
AUD 0.8876 0.0003 0.03%
EUR 0.6230 0.0016 0.26%
GBP 0.4885 -0.0012 -0.25%
HKD 6.0498 -0.0248 -0.41%
JPY 87.3050 1.7380 2.03%

Commods

Commodity Price Change Time
Gold Index 1198.1 -13.300 2014-10-30T00:
Oil Brent 86.2 1.180 2014-10-30T00:
Oil Nymex 81.1 -1.180 2014-10-30T00:
Silver Index 16.4 -0.844 2014-10-30T00:

Indices

Symbol Open High Last %
NZX 50 5370.2 5405.3 5370.2 0.33%
NASDAQ 4532.1 4575.5 4549.2 0.37%
DAX 9283.4 9318.3 9114.8 2.03%
DJI 16968.1 17224.0 16974.3 1.30%
FTSE 6463.6 6553.4 6463.6 1.08%
HKSE 23913.7 24046.4 23702.0 1.25%
NI225 15817.1 16533.9 15658.2 4.83%