Value fashion chain Rivers is still in a turnaround phase under new owners Specialty Fashion Group (SFG).
Group sales rose 4.6 per cent in the September quarter, but performance was hindered by SFG's new acquisition.
The company, which also owns Katies and Millers, purchased Rivers for $3.9 million in November 2013.
Specialty’s net profit fell 3.8 per cent in 2013/14 to $12.5 million due to weaker sales.
Despite stronger comparable September quarter sales, the company declined to offer sales guidance for the December quarter.
SFG CEO Gary Perlstein said Rivers had been affected by aggressive discounting in recent years and the company is working to rebuild the brand.
"The core business is performing well reflecting the positive investments and improvements made over the past number of years.
"However, Rivers is still very much in the turnaround stage and although there is light at the end of the tunnel, positive contributions from this brand will be challenging to achieve in the short term.
"We remain confident that the turnaround efforts are on track, despite the current challenges, and that Rivers will make a real and meaningful contribution to the group’s profitability in future years."