PPL, PUMPKIN PATCH LIMITED

[plastic]

I can remember having quite a debate with a youngish professional mother of three about this company. I was pointing out the model they employed didn't seem to justify the explosive growth in price because we didn't know how the company was going to perform in the mid-term.

After getting shouted at and told I didn't know what I was talking about because I wasn't a mother or the shopper and buyer and carer for children or their image, I was reminded mothers will do anything for their children.

I replied, locally it may be a cult amongst yuppie mums, because it is certainly not a working class thing, but overseas which is where the future revenues will be derived from, we don't know how the middle class demand function or the competition will respond to a new entrant in their turf. Only the next three to five years will show us that.

Anyway, I lost the argument to maintain the peace, as you do, but the proof is in the share price and now it is in the newspapers and a commercial reality.


http://business.smh.com.au/business/pumpki...90630-d2vx.html

Pumpkin Patch closes stores to stem lossesJune 30, 2009 - 8:23AM Children's clothing retailer Pumpkin Patch will shut 20 of its 35 stores in the US in a bid to reduce losses.

The outlets being shut are generally new openings that have struggled to gain traction during the recession in the US, New Zealand-based Pumpkin Patch said in a statement today. Pumpkin Patch is New Zealand's second-largest publicly traded retailer.

Rents on the remaining stores, mostly on the US west coast, are being renegotiated, the retailer said.

[ShareScene.com]

Company:
PUMPKIN PATCH LIMITED

Code:
PPL

Website
http://www.pumpkinpatch.biz/