annual report 2005 - Pumpkin Patch investor relations
annual report 2005 - Pumpkin Patch investor relations
annual report 2005 - Pumpkin Patch investor relations
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The highlight in Australia was our strong sales growth up 17.4% (in AUD) on 2004. This reflects the full<br />
sales impact of 10 new stores in 2004 and part trading of the 11 stores opening in <strong>2005</strong>. The full<br />
effect of the new <strong>2005</strong> stores will not be seen until 2006. Our focus as always was to increase the<br />
performance of existing stores while ensuring that the standards for our new stores were in keeping with our<br />
high service expectations. This strategy paid off with strong improvements in earnings while reducing inventory holdings<br />
and seeing the benefit of the economies of scale in an expanding store network.<br />
Despite a less than favourable Australian dollar exchange rate we managed to increase our EBIT $6.1m to a creditable<br />
18.4% of sales.<br />
Australia continues to offer opportunities to open stores in areas that currently have no or little <strong>Pumpkin</strong> <strong>Patch</strong> presence.<br />
We have identified possible store locations that could continue to be opened at the current rate of 8 to 10 stores<br />
per year for the next 3 years.<br />
We continue to be confident as market leader in fashion childrenswear that we have brand integrity and a range that<br />
will weather most economic environments.<br />
New Zealand retail<br />
<strong>2005</strong><br />
$000<br />
2004<br />
$000<br />
Turnover NZD 57,844 45,763 26.4%<br />
EBIT 10,591 9,150 15.7%<br />
18.3% 20.0%<br />
Stores<br />
<strong>Pumpkin</strong> <strong>Patch</strong> 31 27<br />
Urban Angel 14 14<br />
45 41<br />
New Zealand sales grew 26.4% to $57.8m. This resulted mainly from the effect of a full years trading from 14 Urban<br />
Angel stores (the re-branded HBK stores purchased in May 2004) and new store openings. Excluding the Urban Angel<br />
stores, turnover from <strong>Pumpkin</strong> <strong>Patch</strong> stores was up 15.8% on 2004.<br />
Earnings increased 15.7% on 2004 to $10.6m. The reduction in earnings as a percentage of sales<br />
to18.3% reflected the full years trading of the Urban Angel stores which trade at a lower earnings<br />
percentage than <strong>Pumpkin</strong> <strong>Patch</strong> stores. The re-branding of the old format HBK stores to the new<br />
format Urban Angel stores was completed in the year, the full benefits of this will not be<br />
seen until late in the 2006/2007 years.<br />
During the year 4 stores were opened, taking total store numbers to 45.<br />
We are expecting to open 1 new <strong>Pumpkin</strong> <strong>Patch</strong> and 2 new outlet stores<br />
in the 2006 financial year.<br />
7
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