Troubled retailer Rivers is not expected to hit profitability until 2017.
Parent company Specialty Fashion Group (SFG) has warned its full year earnings will be almost slashed by half due to the brand.
The Group expects full year pre-tax earnings to be between $20 million and $21 million, down from $39.2 million a year ago.
SFG operates a number of chains including Katies, Millers and City Chic.
Its earnings have been impacted by a $21.6 million loss from Rivers, which it acquired for $3.6 million in 2013.
Despite the loss-making brand, SFG expects revenue to reach $791.5 million for the full year to June 30.
This is up 15.5 per cent on the previous year, with same-store sales growth also up 5.3 per cent when excluding Rivers.
SFG CEO Gary Perlstein said he is confident in a turnaround for the brand.
"We are beginning to see encouraging improvements in Rivers and believe that the worst is now behind us.
"However, we acknowledge that there is still much work to be done to return the brand back to profitability.
"We remain confident that Rivers will become profitable in FY2017, and will make a meaningful contribution to the Group’s profitability in future years alongside our other brands."