Pumpkin Patch says trading conditions look set to remain tough until 2010.
Despite tough times the childrens' clothing retailer says it has reduced bank debt through reduced inventory levels and by cashing in advantageous foreign exchange positions.
On Tuesday, Hallenstein Glassons and the Briscoe Group reported a drop in earnings, blaming tightened consumer spending.
Now Pumpkin Patch says challenging conditions, especially in the United States, are expected to continue through until the 2010 financial year.
Shares in the company are down 80% from their high point in January 2007. Earlier this year, 30 head office personnel were laid off in Auckland.
The company is reducing inventories to match market demand and cut debt, which chief executive Maurice Prendergast says will be down to between $30 - $40 million by July next year.
However, as the company is now entering the crucial, but unpredictable Christmas period, he says it is not in a position to offer any earnings forecast for the 2009 year.
Pumpkin Patch was up 5c at $1.05 after the announcement.
