OrotonGroup is the first retailer since Christmas to issue a profit warning.
The company's underlying earnings in the first half of fiscal 2015 are set to fall between $2.5 million and $3.5 million, from $8 million last year.
OrotonGroup operates a number of brands in the market including Oroton, Brooks Brothers and Gap.
While sales have accelerated in the past three months, these have not been enough to offset lower earnings in the three months to October.
The company said its flagship brand Oroton has reduced discounting with a focus on quality margin generation.
"Therefore as a result, earnings for the first half may be lower than last year's first half due to the Oroton strategy to reduce discounting [and] a potential onerous lease provision on the recently closed Hong Kong store."
Despite this, the brand had stronger sales in the second quarter with sales and a gross margin percentage to sales higher than the first half of the year.
CEO and MD Mark Newman said Oroton is pursuing other brand building ventures alongside reduced discounting.
"[It] is also focus on increasing average selling price, a new store concept that positions the brand correctly against our international competition and a brand campaign with Rose Byrne that is resonating well with our customers."
Gap also traded well in December with like for like sales also above the prior year.
However, the brand had a higher negative contribution compared to last year, primarily due to three new store openings in the quarter and greater than anticipated clearance activity.
Newman said Brooks Brothers has incurred continuing startup investment costs.
"The Brooks Brothers business, that only commenced operations from Feb 2014, experienced larger start up costs and a greater loss than expected due to a delayed launc h of the online store and a higher factory outlet sales mix in its first half trading period."