Australian women's wear retailer Specialty Fashion Group Ltd has posted a 5.7% rise in first-half sales, but warned of a tougher trading environment for the rest of the year.

The company said revenue for the six months to 30 June edged up to AUD261m thanks to the addition of new stores, and that flat same-store sales growth marked an improvement on last year's fall of 8.1%.

The retailer, whose brands include Autograph, Crossroads, Katies and Millers, added that full year revenue edged up 0.3%to $574m.

But it said as well as "challenging trading conditions" it was also being hurt by higher manufacturing costs as well as higher rental and wage costs.

"The downturn in consumer discretionary spend that we have seen over the past 18 months is unprecedented," observes CEO Gary Perlstein.

"In this situation where the consumer dollar is shrinking and inflation is rising, we recognise the need to be innovative and expansionary in our approach, in order to differentiate and grow our offer to customers.

"We are gaining benefits through our product sourcing transformation and enhancement of our customer relationship management capabilities.

"Our roll-out of La Senza stores nationally is on track, finishing the year with 15 stores, as part of the group's portfolio of 891 stores across all brands."

Full-year EBITDA is expected to be in the range of AUD40m to AUD41m.