Noni B has posted an after-tax loss of $4.8 million for the financial year.
Noni B sales for fiscal 2015 were $107.9 million, 3.8% below the previous year.
This was due to a range of factors, including the closure of stores and a more disciplined approach to discounting.
Despite the result, chairman Richard Facioni said the company is encouraged by early signs of improvement.
"The positive trends we saw in the second half of the 2015 financial year have continued in the first quarter of the current year.
"Sales on a like-for-like basis were higher than the previous corresponding quarter, gross margins improved and earnings before interest, tax, depreciation and amortisation were positive, compared with a loss of $2.9 million in the same quarter last year."
Facioni said there was a long way to go to improve its performance to an "acceptable" level.
"The impact on sales of depreciation of the Australian dollar is being closely monitored by management and consumer sentiment remains cautious at best.
"Further, as in previous years our results for the first half will depend on the critical Christmas period.
Notwithstanding these factors, over which we have limited or no control, we remain cautiously optimistic about the underlying operating performance of the business."