The owner of the W7 and Technic make-up brands said it now expects to report adjusted profit before tax of between £6mln and £7mln on sales of roughly £50mln for the calendar year.
This compared to the £9.2m adjusted PBT that was being forecast by house broker Shore Capital.
Warpaint said the reasons were the adverse exchange rate movements and the investment in growth, particularly in the US, as well as a different geographic mix of sales.
ShoreCap noted that the effect of the geographic mix was from lower UK sales where profit margin is typically higher.
Reported PBT will also be nearer £3.2mln-£4.3mln due to approximately £2.8mln of amortisation in connection with acquisitions, share incentive scheme costs and exceptional items.
Directors said the group “continues to have a robust balance sheet and to actively implement its strategy for growth”.
Shares were down 27% to 57.3p on Tuesday morning.