Children's clothing company Pumpkin Patch has posted a 27.5 per cent decline in full year net profit to $17.1 million.
The company said today that its result was affected by higher interest charges, higher quota costs and a difficult United States retail environment.
Australia and this country continued
to deliver strong sales performances even when faced with more challenging retail conditions across both markets.
The result for the year to the end of July compared with net profit of $23.5m the previous year, and was made on total operating revenue up 12.3 per cent to $410.4m.
A final dividend of 3.5 cents per share is to be paid, compared to 4.5cps last year.
Difficult retail conditions were expected during 2009, which was likely to be more difficult than the latest year, chief executive Maurice Prendergast and executive chairman Greg Muir said.
The company was well placed to withstand any likely challenges, and the recent weakening of the New Zealand dollar against the company's main trading currencies would create a net positive impact on earnings.
The full benefit of the depreciation would not be seen until the 2010 year.
Pumpkin Patch shares were unchanged in mid-morning trade at $1.49, having fallen from a year high of $3.42 a year earlier.
- NZPA
