Tuesday 18th November 2008
|Text too small?|
"All our markets have been extremely difficult for the first quarter and we probably are yet to see the full impact of the credit crisis," chief executive Maurice Prendergast told shareholders at their annual meeting today.
"While we will see a definite reduction in profitability we are well placed with a very strong brand," he said of the Australian and New Zealand markets.
Shares of the retailer fell 5% to 95 cents today and have dropped 65% in the past 12 months.
Prendergast said Pumpkin Patch faces the most difficult retain conditions and most volatile markets he has seen in his 15 years as chief executive. Since 2003, operating revenue has grown at a compounded average growth rate of 16%, according to his address.
The company has imposed a hiring freeze and reduced head-count at its stores in addition to the head office eliminations it has announced. It also will cut costs across the business, Prendergast said, without being specific.
Capex has been halved to $16 million this year and the company is on track to reduce inventory over the next 12 to 18 months.
No comments yet
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