The reported loss of $30 million was due to costs associated with the company abandoning its United States operation last year and quitting its United Kingdom operation in January, appointing administrators to the unit and flagging restructuring costs as high as $32 million.
However, the rest of the balance sheet, although hit by tighter margins, showed some encouragement.
Total sales rose 17.4% to $161.1 million in the period and gross profit rose 5.1% to $88.9 million. But in the period, gross margin fell from 61.6% to 55.2%.
The rest of the profits, such as operating and after tax were all in the black, but substantially down on the previous corresponding period.
Ms Kinnaird said the first half result was slightly lower than she expected, although Australia was better than she feared. Australia was offset by a slightly worse than expected result from New Zealand and higher corporate overheads.
"Revenue was stronger than we expected but this came at the expense of margin - although earnings before interest and tax were only $800,000 below our forecast."
The outlook for the full-year ended July remained subdued but the 2013 and 2014 years were expected to show an improvement, she said.
Forsyth Barr's forecasts were for little change at the profit after tax level but lower working capital increased the company valuation to $1.50 a share. Pumpkin Patch last traded at 91c.
"Pumpkin Patch's share price is still well below our valuation but it is unlikely to trade up to valuation until there is confidence in the turnaround of the company's longer-term prospects.
"While we are encouraged by the improvements being made, and by the strong growth in online sales, the retail environment remains difficult and further downside risk cannot be discounted," Ms Kinnaird said.
Company chairman Maurice Prendergast said no material improvement was expected in New Zealand during the second half of the year and in Australia, conditions would remain challenging.
"The brand's position in the Australian markets remains very strong and is well positioned for when retail conditions improve.
"When combined with the international opportunities being developed by the wholesale, franchise and online business unit, the company is confident it will deliver significantly better financial results for shareholders."
Earlier this month, the company announced plans to enter its 21st market, signing an agreement with Mexico's leading department store, Liverpool. It would sell Pumpkin Patch products in 24 of Liverpool's 79 stores this year.
No interim dividend was declared.
