Clothing and shoe firm Colorado Group says trading has now picked up after a "generally difficult" October and November.

Underlying earnings before interest and tax are predicted to fall by up to 15% for the year ended in January, and this will be added to the A$9.3m (US$7.29m) worth of costs incurred during its recent takeover by Affinity Equity.

Underlying EBIT from business activities for fiscal 2006 totalled $43m, not including a $5m gain from selling off a building.