Pumpkin Patch is expecting New Zealand retail spending to remain subdued.
The children's clothing retailer's profit fell 44% to just over $8 million in the six months to the end of January, compared with the same period the year before.
Pumpkin Patch says earnings have been hit by lower sales, a rising New Zealand dollar, and higher fixed costs.
Pumpkin Patch chief financial Matthew Washington says the Christchurch earthquake may shake confidence in an already flat retail market.
