At least one of Pumpkin Patch's major institutional shareholders has not lost faith in the children's clothing company despite its profit downgrade last Friday.
Pumpkin Patch downgraded its annual earnings guidance to between $7.5 million and $9 million.
That was well below the market consensus of about $13.4 million.
Analyst at Milford Asset Management Victoria Harris says the share price weakness through June suggests the market was expecting the downgrade and this is likely the low point for the company.
She says moves to improve inventory, reduce debt and strengthen its balance sheet are all positive signs for PPL along with strong online trading results.
However, she says Australia with a weak retail scene is likely to be a drag on the company which has 70% of its stores there.
In August last year, Pumpkin Patch appointed Dianne Humphries as merchandise and brand director.
Ms Humphries was previously managing director of the womens wear chain, Glassons.