Revenue was down 8% to $193.9 million.
Earnings before interest, taxes, depreciation, and amortisation rose 6.3% to $27.7 million, or 14.3% of operating revenue, up from 12.3% in the previous corresponding period (pcp).
Profit after tax rose 50% to $14.26 million from $9.5 million, but when taken as the profit from continuing operations, the $14.26 million was only up 20%.
An interim dividend of 4.5%, up 50%, was declared.
Forsyth Barr broker Suzanne Kinnaird said the result was ahead of her $13.6 million forecasts.
Total sales were below forecast, but that might have been because of additional outlet stores opening temporarily in the first half last year as Pumpkin Patch cleared excess stock.
The inventory was down 34% on the previous period and bank debt was now less than $10 million.
"My $24.5 million full-year forecast will rise slightly to just under $25 million, but I may trim full-year 2011 back from $28 million.
"I may be expecting too much improvement.
"Earnings are coming through and the outlook is becoming more solid, but dramatic growth is still a distant prospect," Ms Kinnaird said.
Pumpkin Patch chief executive Maurice Prendergast said the increased profit reflected the improving trading conditions across the markets in which the company operated.
"While operating revenue was impacted by higher exchange rates and the closure of the loss-making stores in the United States, the increased profit is providing a solid base to continue our international growth."
The Pumpkin Patch brand in Australia and New Zealand had again provided increased profits for the group, he said.
The company had identified the majority of locations for the 30 to 40 stores it planned to open across Australia over the next few years, and was in negotiations with landlords on several of those.
There were 39 stores in the United Kingdom operation, which acted as a key gateway to Europe for future growth.
Retail conditions had been volatile, but there were signs of improvement and the company was assessing new store opportunities there.
Retail conditions in the US appeared to have reached the bottom and were now more stable.
However, the company was not expecting any significant improvement until the 2011 financial year, Mr Prendergast said.
Within the next month, the company's wholesale division would start selling in new markets such as China, Lebanon, Malta and Thailand.
While those markets would start small, they offered significant earnings growth opportunities in the medium to long-term.
"Pumpkin Patch is becoming a truly global childrenswear brand, selling its New Zealand design expertise around the world.
"The brand is now sold in 22 markets, with only 16% of group turnover generated locally."
The group aimed to continue the focus on international markets and further diversify the business, he said.
That strategy had served the group well, and Mr Prendergast was confident it would deliver long-term rewards to shareholders.
"Although we still have some way to go before the markets fully recover, the company has a strong balance sheet and numerous growth opportunities that all bode well for the future."
Highlights
After-tax profit up 50% to $14.3 million.
Trading conditions improving across all markets.
Net bank debt down 70% to $9.6 million.
Interim dividend increased 50% to 4.5c a share.
