Pumpkin Patch says annual profit to beat estimates; stock jumps 11 percent

Pumpkin Patch, the children's clothing chain, said full-year profit before one-time items was about $10.1 million, beating estimates as bank debt and inventory levels fell and online sales rose. The stock jumped 11 percent.

Analysts had been forecasting full-year reported profit before one-time items of $9.2 million for the year ended July 31. The shares rose 10 cents to $1.01, the highest since May 2, and have soared 42 percent this year.

The company attributed the result to "solid trading performances over the last three months." The profit figure excludes non-recurring reorganisation costs.

Both bank debt and inventory were lower than market expectations, it said. Bank debt fell to $55 million from $61 million and inventory dropped to about $62 million from $84 million.

Online sales for the year exceeded $30 million and were up 50 percent on the previous year "with strong growth for both Pumpkin Patch and Charlie & Me brands across all online markets," the company said.

The company plans to release its full results on Sept. 27.

BusinessDesk.co.nz

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