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Pumpkin Patch profit surges

Pumpkin Patch Ltd today reported a 76 percent rise in full-year net profit after tax to $25.5 million despite facing "subdued" market conditions.The childrens' clothing company said while total revenue was $382m, down 11 percent, its focus on in

NZPA
Wed, 22 Sep 2010

Pumpkin Patch Ltd today reported a 76 percent rise in full-year net profit after tax to $25.5 million despite facing "subdued" market conditions.

The childrens' clothing company said while total revenue was $382m, down 11 percent, its focus on inventory, margin, and cost management initiatives, and the restructuring made in the last two years delivered positive earnings in the year to July 31.

"While conditions in all markets are expected to remain challenging in the short-term the strength of the Pumpkin Patch brand will ensure the company benefits when trading conditions improve."

The company said it also improved earnings before interest and taxes (ebit) margins in its four retail markets -- New Zealand, Australia, United Kingdom and the United States.

In New Zealand, sales were down 6 percent, excluding temporary clearance stores operating in 2009 as the retail environment remained subdued for much of the year, and it expected trading conditions to stay the same in the short-term.

Total ebit was up 2 percent to $11.3m.

In Australia, sales on New Zealand terms were down 3 percent, and ebit increased by 1 percent to $38.7m.

In the United States sales were down 16 percent impacted by higher exchange rates and ebit was $2.7m.

In the United Kingdom, sales were up 5 percent in Great Britain terms, but down 11 percent in New Zealand terms due to "significantly" higher exchange rates. Ebit was a loss of $900,000.

Total wholesale sales were down 15 percent to $53.2m, and ebit down 17 percent to $13.7m.

The company has a total of 20 wholesale markets after establishing new partnerships with China, Lebanon, Malta and Thailand.

Pumpkin Patch during the year announced the launch of its new Charlie&Me brand, targeting the "everyday wear" segment of the market. The first store opened after balance date, and the company expects to open at least seven stores in 2011 -- six in Australia and one in New Zealand.

"The launch of the Charlie&Me brand and the ongoing development of new wholesale markets is expected to open up a new phase of long term growth for the company," Pumpkin Patch said.

"Add to this the growth opportunities the Pumpkin Patch brand already has in its existing retail markets and the Company is well placed to deliver long term rewards to shareholders."

The company has opened its first store in Ireland, and another was due to open in October.

Directors approved a final 5c per share dividend, taking the total dividend for the year to 9.5c per share, up 27 percent compared to last year.

It will be paid on October 21.

Pumpkin Patch last traded at 195.

NZPA
Wed, 22 Sep 2010
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Pumpkin Patch profit surges
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