Pumpkin Patch expects softer retail market

Pumpkin Patch expects to put in a strong trading performance over the full year, despite softer retail environments in its main markets.

Pumpkin Patch chairman Greg Muir today declined to give a half year profit guidance at the company's annual meeting in Auckland, saying the company was only just entering its critical November/December trading period.

But he repeated his expectation that retail trading conditions for the year in its three main markets of New Zealand, Australia and Britain will be less buoyant than a year ago.

"However we believe our store roll-out programme, the brand development strategy we have in place, and the increase in customer awareness for the Pumpkin Patch brand we are seeing in all our markets, will combine to generate another strong trading performance," Mr Muir said.

So far this year Pumpkin Patch has opened 11 stores in four countries and is on track to meet its plan to open 22 new stores by the end of the year.

Among the new openings was Pumpkin Patch's first company-owned retail store in the United States.

"Although we had proven the Pumpkin Patch brand sells well in the US through our wholesale customers, the team spent 12 months testing the viability of stand-alone stores and developing our strategy of entry to this exciting market," Mr Muir said.

In September the children's clothing retailer reported a net profit of $24.6 million for the June year, up from $8.1m in 2004.

Shares in Pumpkin Patch were up 2c at $3.28 this afternoon, having ranged between $2.30 and $3.64 over the past 12 months.

- NZPA