AUCKLAND: Pumpkin Patch has announced a 76 per cent increase in profit for 2009/10 despite a dip in operating revenue.
The New Zealand-headquartered childrenswear company revealed net profit after tax for the year to July 31, 2010, was $25.5 million. This was up from $14.4 million in 2008/09.
The company's operating revenue for the year was $381.9 million, down 10.9 per cent from $428.6 million in 2008/09.
Pumpkin Patch CEO Maurice Prendergast said the profit result was “very strong” considering the “subdued” retail environment that endured throughout 2009/10.
“We generated increased earnings before interest and tax margins in all of our four retail markets through focus on the management of inventory, margins, and overheads, so we are very pleased with the result.
“We also saw the benefits of the major restructuring and business initiatives we undertook in 2009,” Prendergast said.
The company opened a total of 12 stores during the year, including eight new stores in Australia and its first store in Ireland.
“We expect to open at least 22 new stores in the coming year to take advantage of the significant growth potential our retail markets have to offer,” Prendergast revealed.
In addition, Pumpkin Patch expanded into four new wholesale markets in 2009/10, namely China, Lebanon, Malta and Thailand. The company now has a wholesale presence in 20 markets worldwide, and generates over 85 per cent of its turnover offshore.
The company indicated 2010/11 would be a key year for its newest retail brand, Charlie & Me, with plans to open seven stores across Australia and New Zealand in the coming financial year.
“Charlie & Me will allow us to expand into a space in the market that the Pumpkin Patch brand doesn't directly cater for and will leverage off the considerable capabilities we have built up over the last 20 years,” Prendergast said.
Pumpkin Patch was established in 1990 and currently operates in 22 markets worldwide.