Retailer Hallenstein Glassons is considering expanding its manufacturing of clothing to India and countries in eastern and central Europe, to help drive down costs.
Hallenstein Glasson's profit fell 6.6% to $18.3 million in the year to August, compared with the year before, after being forced to discount excess stock.
Most of the company's clothing is made in China, where factories have recently raised prices and where the cost of cotton has also increased.
Chief executive Graeme Popplewell says reducing the cost of making clothing would help the company manage its cash flow.
Hallenstein shares rose 27 cents to $3.45 each on Monday.