Shares in Noni B slumped 8.5 per cent after the troubled fashion retailer flagged a $2.2 million annual loss as it struggles with weak sales.
Noni B disappointed investors with news that it expects its loss for the 2013/14 financial year will be at the top end of expectations.
The retailer had warned in June that it was headed for a loss of between $1.8 and $2.2 million.
In an update it revealed continued weak conditions in the retail sector meant it was facing a loss at the steeper end of its forecast.
"Due to continued weakness in the specialty retail market, Noni B expects an unaudited, full year, after tax loss of $2.2 million," Noni B said in a statement released after the market closed on Tuesday.
Investors expressed their disappointment when the stock began trading on Wednesday, pushing the shares down four cents to 43 cents.
Noni B is one of many fashion retailers that have issued profit warnings in recent months.
Most have blamed the warmer-than-expected autumn and winter weather for dragging down their sales.
Meanwhile, Noni B is continuing to look at potential takeover offers.
"At this stage, there can be no assurances that a transaction will eventuate," it said.
"However, the board will inform shareholders of any material developments at an appropriate time, should they arise."
The retailer in June said it had been approached by several parties interested in taking a stake or complete control following news Noni B's major shareholders were considering the future of their involvement with the business.
Noni B will announce its full year results on August 28.
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