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

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news