Hallenstein Glasson says clothing sales have fallen due to the mild winter and the company does not expect its financial performance to improve.
Sales at Hallenstein Glassons' stores fell 2.5% in the 17 weeks to the end of May, compared with the same period last year.
While sales in Australia have risen by 6%, an exceptionally mild winter in New Zealand has crimped sales here.
Chief executive Graeme Popplewell says the company is already discounting, and cannot see its profit improving on last year's decrease of 16.5%.
The group has seven stores still closed in Christchurch, due to February's earthquake.