NEW ZEALAND: Pumpkin Patch shares slump on H1 profit slide
- H1 profit after tax slides 98% to NZD106,000
- Revenue from continuing operations fell 16.5% to NZD127.8m
- Company remains confident in its outlook
Australasian children's wear retailer Pumpkin Patch has seen its share price plummet after first-half profit and revenue were "below acceptable levels".
The group's profit after tax stood at NZD106,000 (US$91,375) for the six months ended 31 January, compared to NZD4.7m in the same period of the prior year.
Revenue from continuing operations fell 16.5% to NZD127.8m from NZD153.1m last year. In Australia, total sales declined 19% to NZD82.8m, while New Zealand saw sales fall 14% to NZD24.1m due to supply chain disruptions and higher levels of promotional activity.
International sales slipped 6% to NZD20.9m after a 34% increase in its online sales was offset by changes to the timing of deliveries to wholesale partners and softer retail conditions in Ireland.
"The result reflects the challenging conditions in core markets, especially for apparel retailers, however we have many multi-channel and multi-brand opportunities available to us and we are making the changes needed to take advantage of them," said Pumpkin Patch chief executive Di Humphries.
"I said when I took on this role that there was a lot of work to do to achieve the results expected from the company. Planning and implementing the changes needed in a company of this size and complexity does and will take time."
Although the group expects trading conditions across its core markets, especially Australia, to remain challenging for the rest of the year, it said it remains focused on making the changes that are necessary for it to improve financially.
Pumpkin Patch's share price fell 19.1% to NZD0.55 at 4:00am GMT today (19 March).
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