Pumpkin Patch records 76 percent profit on expense cuts
Children's wear retailer and exporter Pumpkin Patch Ltd said in a statement that it would continue growing its chain of retail stores in in Australia, New Zealand, the United Kingdom, and the United States in the next two to three years.
With full-year profits rising 76 percent by cutting expenditures, the Auckland-based clothing company plans to engage in expansion in the next three years, the company statement indicated. The company will open 11 new stores in 2011 as it actively markets its new stand-alone brand Charlie&Me in key market segments in Australia and New Zealand.
In spite of the relatively difficult consumer market, Pumpkin Patch Chief Executive Officer Maurice Prendergast said the presence of its new brand Charlie&Me will allow the company to penetrate the "everyday wear" segment, which makes up 75 percent of children apparel sales all over the world.
He noted that they will open 11 new company-owned stores in 2011 baring the Charlie&Me brand.
The company currently employs 2,800 people, and has company-owned retail stores in key Australasian markets New Zealand, Australia, the United Kingdom and the United States and it has distribution agreements in South Africa and the Middle East. The Company also sells in top department stores in Australia, the United Kingdom and the United States, and on the Internet.
Company documents showed that Pumpkin Patch is now slowly becoming a recognized international brand as it is now available in 22 markets globally and some 85 percent of sales came from these offshore markets.
By cutting costs in the last fiscal year ending July 31, 2010, the clothing firm 's net income rose to $25.5 million from $18.7 million recorded during the same period last year.
Prendergast said that this shows a quite strong earnings base considering the current retail environment they are now facing.
"We expect to open at least 20 new stores in the coming year to take advantage of the significant growth potential our retail markets have to offer," he said in an issued statement.
The stock was unchanged at NZ$1.95 at 10:45 a.m. in Wellington trading. The company increased its dividend 27 percent to 9.5 cents per share.