Sharechat Logo

Daily ShareChat: Pumpkin Patch

By Jenny Ruth

Thursday 21st April 2011

Text too small?
 Jenny Ruth

Pumpkin Patch Australian and New Zealand sales have underperformed the rest of the apparel sector, says Buffy Gill, an analyst at Goldman Sachs & Partners.

Pumpkin Patch's New Zealand sales have fallen 17% from their peak while overall apparel sales have risen 10% and sales of listed fashion retail stocks are down only 7%, Gill says.

Similarly, its Australian sales have fallen 11%, more precipitous than the 1% fall in overall apparel sales and the 6% fall for listed fashion stocks.

"We believe the under-performance has been driven by a contraction in overall childrenswear in Australasia as opposed to material market share losses by Pumpkin Patch," Gill says.

"Indeed, our analysis suggests discounting has been more aggressive in childrenswear than in general apparel." Anecdotal feedback supports this view, she says.

She estimates annual New Zealand childrenswear sales have fallen about 20% since March 2009 from $490 million to about $395 million currently while Australian childrenswear sales have dropped from about A$2.6 billion to A$2.4 billion.

Gill estimates Pumpkin Patch has about 17% of the New Zealand childrenswear market and about 8.4% of the Australian market and although it has held its market share, it has had to discount to do so.

Recommendation: Hold.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Pumpkin Patch turned to a profit in 2013; focus on repaying debt amid challenging conditions
Pumpkin Patch's Di Humphries appointed new chief executive
Former Glassons boss Di Humphries seen as strong contender for top Pumpkin Patch job
ACC takes advantage of beat-up Pumpkin Patch shares to lift stake to 9.2 percent
Pumpkin Patch becomes second retailer in month to cite Australian rivalry hurting profit
Pumpkin Patch turns to 1H profit after year-earlier reorganisation costs; sales fall
Pumpkin Patch wary of Christmas trading as retailers keep discounting
Pumpkin Patch FY earnings slide 20 percent, meets guidance
Pumpkin Patch says annual profit to beat estimates; stock jumps 11 percent
Conyngham resigns as design director at Pumpkin Patch