Pumpkin Patch's accounts are in the red. The children's clothing retailer on Tuesday posted an annual loss and announced the resignation of its chief executive.
The company lost $1.8 million in the July year, a turnaround from the previous year's profit of $25.5 million.
Chief executive Maurice Prendergast says challenges faced during the year, included higher costs due to higher cotton prices and the surging New Zealand dollar.
Sales fell 7% to $357 million and weaker demand and higher costs crimped earnings.
Excluding one-off and restructuring costs, underlying profit at Pumpkin Patch fell by half to $12.6 million.
In both New Zealand and Australia, sales fell 8% due to the subdued retail spending and natural disasters.
Looking ahead, Mr Prendergast says trading will continue to be challenging until global markets improve.
Separately, Mr Prendergast will step down as chief executive at the end of the year, though he will remain as a director.
