Pumpkin Patch provided no guidance for the 2015 financial year but indicated the first seven weeks of trading in the new year were ahead of the previous corresponding period (pcp).
The children's clothing company's profits slumped in the year ended July.
The profit after tax and before reorganisation costs was down 85% to $1.23 million from $8.52 million in the pcp.
Reorganisation costs in the 2014 year were $11.4 million, well up on the $3.5 million in the pcp.
The reported profit of $5.1 million last year turned into a $10.2 million loss in 2014 once the reorganisation costs were included.
Forsyth Barr broker Haley Van Leeuwen said the $1.2 million was at the lower end of recent guidance and below her forecast of $1.5 million.
''The result is significantly below last year, driven by a tough retail backdrop, unfavourable currency movements and inventory management and supply disruptions.''
Significant reorganisation costs - driven by a writedown of inventory, store assets and IT software - meant Pumpkin Patch reported a loss.
Debt levels remained high and inventory levels were ahead of last year, given a focus on starting the new season without any inventory disruptions.
New Zealand: Earnings before interest and tax of $8.4 million in the period was down on the $9.2 million in the previous year.
The fall was underpinned by increased discounting which weighed on sales.
Given the shift in mix of sales towards online, and favourable movements in import exchange rates, margins were ahead of the pcp, Mrs Van Leeuwen said.
Australia: Pumpkin Patch reported a significant profit fall in Australia underpinned by increased discounting in response to industry conditions, currency exchange rate difficulties and a shift in the sales mix from the higher-margin online channel.
International: Sales growth of 6% was driven by its lower margin Charlie & Me brand, she said.
Earnings were down 7% on the pcp, reflecting the shift in sales towards Charlie & Me and higher average export exchange rates.
Mrs Van Leeuwen said central support costs were in line with last year. Unfavourable foreign exchange movements offset significant cost savings from head office restructuring.
As expected, the company did not pay a dividend in 2014, given its focus on reducing debt.
Dividend reinstatement was dependent on the timing of how quickly Pumpkin Patch could translate improved procurement stock flow into a reduction in bank debt.
''The commentary indicates trading conditions remain challenging, particularly in Australia. Pumpkin Patch is undergoing a strategic review of its business, although the time frame of when full benefits will be seen has been pushed our further to 2016,'' she said.
