27 Sep 2013

Pumpkin Patch switches loss to profit

1:12 pm on 27 September 2013

Children's clothing retailer Pumpkin Patch has returned to profit after losing $27.5 million last year.

The retailer made an annual net profit of just over $5 million, although its underlying profit was down 16%.

It says net profit before reorganisation costs fell to $8.5 million in the 12 months to the end of July, from $10.1 million the previous year.

Managing director Di Humphries, who has been in the job for less than a month, says while the company is in a much stronger financial position than a year ago, there is still a lot of hard work to do in what are challenging trading conditions.

Ms Humphries says one highlight is the 18% jump in online sales, to nearly $39 million.

She says the online business is very profitable and now generates almost twice the earnings of all the company's New Zealand stores combined.

Despite that, overall sales fell 4% to nearly $289 million.