prospectus for - Pumpkin Patch investor relations

description of the company’s businessPumpkin Patch: A Platform for GrowthPumpkin Patch intends to continue increasing its sales and earnings by using strategies similar tothose that it has successfully used during the past five years.Pumpkin Patch’s strategy is based around selling leading edge kids’ fashion through a range ofchannels including its own retail stores, selected department stores, wholesale distributionarrangements, the internet – www.pumpkinpatch.co.nz – and via mail order catalogues.Through these avenues, Pumpkin Patch sees its key growth coming from the following:• Continued development of its home market in New Zealand and Australia through newstore openings;• Expansion of its pre and early teen brands;• Continued incremental revenue growth in Pumpkin Patch’s United Kingdom retail chain;• Expansion of overseas third party retailing through department stores in the United States; and• Extension of existing operations in Europe and the Middle East in conjunction with our thirdparty retailers.Pumpkin Patch Company Owned StoresThe core of the Company’s sales growth in the last few years has come from developing theAustralian market and strengthening our presence in New Zealand. Pumpkin Patch currently has 64stores in Australia and 37 in New Zealand.Pumpkin Patch management is confident that the market can be further developed in bothcountries by establishing stores in catchments that are not already covered. Based on pastexperience, Pumpkin Patch believes this strategy can be successfully implemented through 2004,2005 and beyond.It is expected that New Zealand and Australian store openings will generate the bulk of the salesgrowth during the next two years.Wholesaling: Third Party RetailersPumpkin Patch has developed relationships with a number of third party retailers, including DavidJones in Australia and independent department stores in the United States, Ireland and the MiddleEast. These relationships are expected to continue to contribute to sales growth in 2005 and beyond.Brand ExtensionsOn 3 May 2004, Pumpkin Patch acquired the New Zealand retail chain HBK Girl. HBK Girl specialisesin pre and early teen girlswear which is similar to Pumpkin Patch’s Urban Angel label. The HBK Girlchain has 14 stores throughout New Zealand. The chain was acquired to widen the distribution ofthe Urban Angel brand.Management have not forecast for the new chain to make any financial contribution in the nexttwo years.bedlinen created for kids6