Pumpkin Patch is back in profit, with full year earnings jumping 76% to $25.5 million.
That compares to a loss of almost $27 million last year.
Overall revenues at the children's clothing company fell 11% to $382 million in the year to July, as sales in Britain, the United States and Australasia remained subdued and the high New Zealand dollar ate into profits.
Despite those headwinds, the chief financial officer Matthew Washington, says margins improved, due to cost cutting and restruturing measures over the last two years.
Pumpkin Patch plans to open 22 new stores in the coming year, in order to take advantage of the anticipated pick up in consumer spending.
The company will pay a dividend of 9.5 cents per share, which is an increase of 27%.
Shares in Pumpkin Patch remain unchanged at $1.95 on Wednesday.