Jan 27 - New Zealand children's clothing retailer Pumpkin Patch said on Thursday it expected a sharply reduced first half profit because of lower sales and difficult trading conditions.

Pumpkin Patch

The company, which operates stores in New Zealand, Australia, Britain and United States, said it now expected a net profit of between NZ$7.5 million and NZ$8.5 million ($5.8 million to $6.5 million).

That compares with a net profit of NZ$14.3 million a year earlier.

It said the trading environment in its core markets was lacklustre and it was cautious about the sector for the coming year.

It forecast a full year net profit of between NZ$16 million to NZ$18 million.

Shares in Pumpkin Patch last traded up one cent or 0.6 percent at NZ$1.58.