Pacific Brands has faced a shareholder backlash over its executive pay despite the owner of Sheridan bed linen and Berlei and Bonds underwear predicting stronger earnings.
Nearly 40 per cent of shareholder votes went against Pacific Brands' remuneration report for 2014/15, above the 25 per cent required to deliver a strike against the company.
A second strike at next year's annual general meeting could lead to a board spill.
Speaking before the shareholder vote, chairman Peter Bush defended retention and incentive agreements struck with some executives during the year.
The agreements were made at a time of uncertainty for the company, as former chief executive John Pollaers had just departed and a major restructure was underway, Mr Bush said.
"The board believes that the retention incentives for key executives were entirely appropriate given the exceptional circumstances at the time which are highly unlikely to be repeated in the future," he said.
Meanwhile, chief executive David Bortolussi said earnings before interest and tax and one-off items are expected to rise in the current year, and sales in the past 16 weeks were up seven per cent on the same period a year ago.
But the key trading months of November and December will largely determine the company's performance for the first half of the financial year, he said.
"Pacific Brands is now a very different business: much higher quality and substantially simplified, with greater growth potential and a strong balance sheet," he said.
"We are off to a good start this year and I'm confident that we have the right strategy to deliver earnings growth and dividends in fiscal 2016 and beyond."
The company has not paid a dividend since April 2014, but is targeting a payout ratio of at least 50 per cent of profit from 2016.
Mr Bortolussi said the Bonds and Sheridan brands are performing well, but warned a weaker Australian dollar may impact future earnings.
He reiterated plans for price increases, of more than 10 per cent for some products, to offset those costs.
"We have plans in place to mitigate the dollar impact of FX depreciation on margins through a combination of sourcing benefits, mix improvement, cost of doing business reduction and price increases," he told shareholders.
Pacific Brands shares were steady at 71 cents.
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