Oroton Group's net profit has tumbled 68% to $2.6 million for the full year.
Earnings before interest, tax and amortisation also fell by almost half to $10.8 million on last year.
Oroton Group CEO Mark Newman said the losses stemmed from repositioning its flagship brand.
"FY15 was a challenging year with the results reflecting the short term affects of repositioning our core Oroton brand to a true affordable luxury positioning."
The closure of both Oroton's Hong Kong store and Singapore regional office added to the result.
The Group was also hit with a full year of losses of the now defunct Brooks Brothers Australia joint venture.
The company opened three large-format Combo stores for its Gap brand over the year, incurring first year costs of adding to the network.
Newman said he is confident for fiscal 2016, with the Group recording like-for-like sales growth in the first seven weeks of +11%.
He said the strategy to elevate the Oroton brand had resulted in significantly reduced discounting, the roll out of quality concept stores, higher average selling prices and average transaction value.
"These initiatives have, however, come at the cost of reduced sales and earnings this year and although the reduced levels of discounting resulted in an increase in margin at constant currency, this was offset by a lower AUD/USD rate, despite being well hedged."