Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Pumpkin Patch targets IT system, stores, inventory in review

Pumpkin Patch targets IT system, stores, inventory in strategic review

By Suze Metherell

June 24 (BusinessDesk) - Pumpkin Patch, which slashed its full-year earnings forecast by as much as 88 percent last month, is mulling its "store footprint", stock levels, and an information technology system upgrade as it pushes on with a strategic review to drive performance above the "currently unacceptable level".

The Auckland-based children's wear retailer announced the strategic review in March to try to revive its performance and has shed 52 percent of its market value this year to be the third-worst performance in the NZX’s All Ordinaries Index. Pumpkin Patch is considering an investment in a new IT system over the coming 24 months to make its distribution and supply chain management more efficient, while it is also assessing its store footprint, including a store-by-store review. The retailer has already identified a number of ways to reduce inventory held by the company, and plans to appoint a project management officer to report to chief executive, Di Humphries, on the review and proposed changes.

"The board believes that current financial performance is below an acceptable standard," the retailer said in a statement. "The identification of key issues within the business will allow a renewed focus on areas of concern."

Pumpkin Patch wants to refresh its products and branding, gain greater leverage out of its existing customer database, implement new supply chains and distribution arrangements and improving the product value equation, it said.

Children’s clothing stores are struggling along with the broader rag trade in the face of online competition, discounting and soft demand in Australia and New Zealand, which forced rival retailer JK Kids to close last year, while clothing chain Postie Plus this month appointed administrators after lenders withdrew support.

Last month Pumpkin Patch cut its guidance for after-tax earnings before reorganisation costs to a range of $1 million and $3 million for the year ending July 31, having earlier said earnings would be little changed from last year’s $8.5 million.

The company last paid a dividend in the first half of its 2011 financial year. Pumpkin Patch shares rose 2.3 percent to 44 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news