Children's wear retailer Pumpkin Patch is to close more than half of its stores in the US as the New Zealand-based company reins in its international expansion.

The closure of 20 of its 35 US stores follows Pumpkin Patch's review of its US operations, which began in February this year.

The outlets affected are primarily recently opened stores which the company said had failed to gain traction in the difficult retail environment, leaving the core of its operations along the west coast.

Pumpkin Patch has also renegotiated lease terms for 11 of the remaining 15 stores at rent terms which it said "better reflect current market conditions".

Discussions are ongoing on the remaining four stores.

"The long-term future of the Pumpkin Patch brand in the United States require changes to be made to our store network that provide the company with better financial outcomes in the near term, and create a more sound foundation on which we can develop our United States strategy in the longer term," said Pumpkin Patch CEO Maurice Prendergast.

The company said that if trade continued at current levels, its US business would generate a close to break-even full-year earnings result at store level.