RCG Corporation, owner of The Athlete's Foot and Hype DC, has lowered its earnings guidance for the financial year.
The group expects earnings to be up to $5 million lower than the $90 million forecast for fiscal 2017.
RCG Corporation revealed this is in light of challenging trading conditions since Boxing Day.
In spite of the full year downgrade, the company announced record first half year profit.
Underlying net profit rose 34% to $23.3 million, with earnings before tax and interest rising 42% to $42.9 million.
The result follows a spate of acquisition activity, with the purchase of Accent Group in 2015 and Hype DC in 2016.
RCG Corporation co-CEO Hilton Brett said he is pleased with the results.
"We are exceptionally pleased with the results that the group has delivered and the progress we have made in the transformative period since RCG acquired the Accent Group in 2015 and Hype DC in 2016.
“With the distribution rights to 10 international brands and over 400 stores across 10 retail banners, RCG is the regional leader in the retail and distribution of performance and lifestyle footwear.
"With its dominant market position and diversified portfolio, the Group is well positioned to withstand tough market conditions, capitalise on opportunities and deliver outstanding long-term returns for our shareholders."
RCG Corporation acquired Hype DC for $99 million, six times its normalised earnings for the 2016 financial year.