WELLINGTON, Sept 17 (Reuters) - New Zealand children's clothing maker and retailer Pumpkin Patch Ltd. on Wednesday reported a 28 percent fall in full year net profit, on the back of tough retail markets and higher costs.

www.pumpkinpatch.co

Net profit after tax for the year ended July 31 was NZ$17.1 million ($11.3 million) compared with NZ$23.5 million in the previous year, restated under new accounting rules.

The company declared a dividend of 3.5 cents per share, compared with 4.5 cents last year.

The Auckland-based firm, the largest specialty children's clothing retailer in New Zealand and Australia, has been expanding aggressively into the United States, Britain and Asia.

It said it expected retail markets to get tougher in the year ahead but a lower New Zealand dollar would have a positive impact on earnings.

Shares in Pumpkin Patch last traded unchanged at NZ$1.49, having fallen around 44 percent so far this year, compared with a 20 percent drop in the benchmark NZSX-50 index .NZ50. ($1=NZ$1.52)