Pumpkin Patch warned it would be a loss.
Now the childrenswear retailer has confirmed expectations and posted an $A8.3 million loss for the financial year.
The trading performance forced Pumpkin Patch into talks to extend the term of its $75 million banking facility.
This has been extended through to the end of 2017.
Earnings were expected to be significantly lower in 2016 due to foreign currency "headwinds" and the flow on impact of tough trading conditions in the wholesale and online channels.
It wasn't all bad.
Sales in Australia, its largest market at 64% of total revenue, rose 1.3% to $A138.5 million.
Meanwhile, another New Zealand retailer is recording a strong lift in profit.
Hallenstein Brothers announced a a 22% rise in net profit to $17.38m for the year to August 1.
A new marketing campaign aimed at the younger market saw sales up 6.5%.
The company's womenswear chain Glassons saw profit fall 16.5% after a change in executives.