Pumpkin Patch may close some US stores

Pumpkin Patch will look at the viability of keeping all its US stores open after its half yearly results showed US operations were continuing to make losses.

The United States operations recorded an ebit loss of $8.9 million even though retail sales were up 50.6% to $27.3 million.

The increase in sales is partly due to the higher US dollar compared with the New Zealand dollar and the 16 new stores the company has opened.

Earnings losses in the US and the UK had dragged down results at Pumpkin Patch, which today reported a 7% drop to $9.5 million in net profit for the half year ended January 31.

Without the US results the group’s ebit would have been up 9.5%.

Chief executive Maurice Prendergast says: “The extremely volatile conditons up there lead to a disappointing result for the US business.”

“It is hard to see the end of the drama in the US,” he says.

Pumpkin Patch has already cut headcounts in both the company’s 34 stores and in the US head off and improved the supply chain but Mr Prendergast says they would be looking at each store.

He refused to comment on the future of those stores but would not discount that some might be closed.

“I’m not prepared to commit. We won’t know for a couple of months,” he says and adds the company hasn’t seen the benefits of staff redundancies and restructuring yet.

But Prendergast says that the board still believes Pumpkin Patch have a place in the US market and this is supported by sales at the department stores.

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

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.7141 0.0015 0.21%
AUD 0.9424 0.0038 0.40%
EUR 0.6537 0.0002 0.03%
GBP 0.5880 0.0026 0.44%
HKD 5.5360 0.0104 0.19%
JPY 75.3270 0.3560 0.47%


Commodity Price Change Time
Gold Index 1266.8 0.710 2016-10-27T00:
Oil Brent 50.5 0.530 2016-10-27T00:
Oil Nymex 49.7 0.550 2016-10-27T00:
Silver Index 17.6 0.020 2016-10-27T00:


Symbol Open High Last %
NZX 50 6941.9 6949.7 6941.9 0.02%
NASDAQ 5203.7 5232.4 5216.0 0.12%
DAX 10635.0 10716.2 10717.1 -0.24%
DJI 18193.8 18242.8 18169.7 0.30%
FTSE 6986.6 7006.4 6986.6 0.14%
HKSE 23088.8 23157.7 23132.3 -0.77%
NI225 17448.2 17461.0 17336.4 0.63%
ASX 5295.5 5311.4 5295.5 -0.22%