Pumpkin Patch reports "pleasing second half performance"

By

Benjamin Fitzgerald

Published
Aug 19, 2016

Pumpkin Patch has maintained its earnings guidance for the year ended July 31, describing the six month period as a “pleasing second half performance”, as online sales thrived.

The New Zealand-based firm said normalised earnings before interest, tax, depreciation and amortisation were between $2.8 and $3.4 million in the year, inline with the retailer's initial predictions after reporting first-half results in May. Pumpkin Patch reported normalised ebitda of $11.7 million in the 2015 financial year and $17 million in 2014.

“Consistent with the company’s strategic plan, the company is continuing to assess whether further restructuring provisions are required in respect of any underperforming assets,” Pumpkin Patch said in a statement.

“As part of the annual review of its banking facilities, the company is in ongoing discussions with its bank on the suitability of the facilities’ terms and conditions. Those discussions will occur in the context of the current operating environment and capital expenditure requirements associated with the company’s strategic plan. Some additional flexibility is being sought. The review is anticipated to be completed in mid-September.”

For the second half, the children's apparel retailer witnessed online sales growth of 44.1 percent in Australasia, and same-store growth of 4.2 percent in Australia and 5.4 percent in New Zealand, which “contrasts significantly with the challenges experienced in the first half.”

Pumpkin Patch’s sales fell 16 percent to $102.8 million in the first half from a year earlier, with online sales down 13 percent. It posted a $6.8 million loss in the first half, compared to a $700,000 profit a year earlier. It posted a $6.8m loss in the first half, compared to a $700,000 profit a year earlier.