The recession-hit Pumpkin Patch, a leading retailer of children clothing, reported a 14 per cent decline in its net profit, for the year to July 31, due to decline in demand across the segment under the impact of global slowdown. Recession forced the firm to roll back its expansion plans, and resort to closure of stores in many locations.

Pumpkin's adjusted net profit after tax stood at $14.7 million, against $17.1 million in the corresponding period last year. The firm, having strong presence in US, Britain and Asian countries, suffered a net loss of $26.7 million due to closure of 15 out of its 35 stores in the US.

Pumpkin Patch recorded a 1.9 per cent decline in sales in New Zealand, led by increased promotional activities. It adopted a number of cost-cutting measures in the recent financial year, in a bid to mitigate the impact of global slowdown on its business. Cost-cutting measures helped the company reduce its debt burden by 77% to $18 million.

The firm now hopes to make use of rising trends in the economy, and meet its trading targets. Stocks of Pumpkin Patch, which increased its dividend by one cent to 4.5 cents per share, were trading at $2.02 on the bourses.