The label's website aimed at young people sells T-shirts from $99 upwards, jeans from $209 and hoodies for $229.
But creative director Marc Moore said he just took the image from Tumblr and re-posted it as a "light-hearted" dig at advertisements for accommodation such as Airbnb.
"It was a poke at advertising where you are looking at accommodation on a website and when you go to check in it's nothing like that," he said.
Although he lives in Auckland, he said he was not aware that people had been sleeping in cars in the city.
"I don't read the news very often, I'm always busy working on the fashion. I didn't realise there was a current issue at the moment," he said.
"I just look at the fashion blogs and stuff. That's what I do."
He removed the post on Sunday morning and published an apology.
"There were a lot of hateful comments," he said.
"There were a lot of personal messages too saying don't take it down, it's freedom of speech, people need to relax. But I thought it was best to take it down and issue an apology."