The company behind Bonds and Berlei underwear is facing more bleak times ahead.
Pacific Brands Chairman Peter Bush and chief executive David Bertolussi say the company has taken measures to improve its financial performance, but more needs to be done.
"I wish I were here saying that there had been a miraculous bounce back in consumer confidence and that retail was roaring once again," Mr Bush told the company's annual general meeting.
"Unfortunately, it simply isn't.
"And while we have been taking all practical steps to engineer better performance from your business, we still have some way to go."
Pacific Brands, whose labels also include Sheridan, suffered a loss of $224 million in the 2013/14 financial year as competition hurt profit margins.
The company is selling its workwear division, which includes the Hard Yakka, KingGee and Stubbies brands, for $180 million as it looks to concentrate on the core Bonds and Sheridan businesses.
Mr Bertolussi said Pacific Brands continued to face challenging conditions.
"Consumer, trade and currency market conditions continue to be difficult," he said.
The company could not quickly increase domestic production of its brands to take advantage of recent fall in the Australian dollar, he added, as it sources 87 per cent of its products from overseas.
Pacific Brands would focus on key brands and sales channels, and adopt a more balanced growth and disciplined cost agenda, he said.
Sales in the current financial year so far were higher than a year ago, Mr Bertolussi said.
First half sales are expected to be higher, mainly due to growth in direct sales to consumers, and online.
But competition and the fall in the value of the Australian dollar would pull back profit margins, he said.
Earnings before interest and tax were expected to be lower than a year ago, but higher than in the second half of the 2013/14 year, Mr Bertolussi said.
Pacific Brands is also continuing to review its business, with the aim of further simplifying operations.
Shareholders endorsed Pacific Brands' executive pay.
The company's shares were steady at 44 cents at 1342 AEDT.
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