HONG KONG: Li & Fung core H1 profit drops 22%
- Core H1 operating profit down 22% to US$221m
- Reported profit up 33% to $312m
- Turnover up 4% to $9.128bn
Core operating profits at consumer goods giant Li & Fung fell 22% despite a slight rise in turnover, as the Hong Kong-based company was hit by continued economic fragility in its main markets.
However, the company said it remained committed to its target of $1.5bn in core operating profit by 2013, as envisaged in its three-year plan.
“While core operating profit is relatively weak in the first half of 2012, we are very focused on taking the necessary steps to improve the second half results and set the stage for 2013, the last year of our current three-year plan,” said Bruce Rockowitz, group president and CEO.
“We have continued to expand our business in Asia through LF Asia, and have concluded a number of new licensing agreements with major brands and retailers.
“It is also encouraging to see the cross-selling business among our three networks progressing so well.”
Group chairman William Fung said more acquisition deals at “attractive prices” were always available at a time of global economic uncertainty, signalling that the company would continue to expand through organic growth and acquisitions.
An interactive databank with intelligence on the major apparel sourcing countries
International apparel retailers are looking to strengthen their presence in lower-tier cities in China amid increasing competition, a report by the Li & Fung Research Centre has found....
Global sourcing giant Li & Fung Ltd today (11 January) warned of a 40% fall in full-year core operating profit - and named a new president to lead its US unit where sales and margins have weakened....
US women's wear retailer Ann Inc has shored up its eco-credentials by joining the Sustainable Apparel Coalition (SAC) and rolling out its supply chain environmental programme with global vendors....
South Korean baby and children's wear retailer Suhyang Networks has been acquired by privately held Fung Retailing....
- Yuan devaluation impact mixed for garment firms
- Will Vietnam struggle with impending trade deals?
- China devaluation: what’s the big deal?
- The new age of disruption on apparel production
- Gap bullish on China growth opportunities
- US Q2 in brief: Guess, PVH, Abercrombie & Fitch
- Gap restructuring weighs on Q2 as profit falls 34%
- Luen Thai to continue investment in Vietnam
- Ralph Lauren debuts biometic smart shirt
- China market woes could hit consumer spending
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Ethiopia – the emerging textile and clothing industry
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Global market review of lingerie - forecasts to 2020
- Global market review of swimwear - forecasts to 2019