Blog: Acquisitions continue to attract Li & Fung
Leonie Barrie | 13 August 2012
Li & Fung, the world's largest supplier of apparel and consumer goods, says growth through strategic acquisitions and the trend for outsourcing by retailers and brands will continue to drive its business going forward - despite posting a slump in core first-half operating profit.
The comments came as the Hong Kong based group saw core operating profit tumble 22% to US$221m in the first six months of the year, although turnover edged up 4% to $9.128bn.
Noting that more acquisition deals are available at attractive prices in a time of global economic uncertainty, the company stressed it is still focused on setting the stage for 2013, the last year of its current three-year plan which hopes to reach a core operating profit of $1.5bn.
But apparel group Warnaco has cut its full-year projections after second quarter profit slumped 79%, hit by a $12m charge linked to its 2008 sale of lingerie brand Lejaby. A strong performance from swimwear brand Speedo thanks to the Olympics was more than offset by declines in sportswear and intimate apparel, which the company blamed on challenging market conditions, particularly in the US and Europe.
The outpouring of rage that followed the revelation that Olympic opening ceremony uniforms for US athletes were made in China highlights a 'New Accountability' in apparel sourcing, where buyers and sellers will have to accept the increasing influence of outsiders on how they do business.
In Bangladesh, global clothing brands and retailers are pressing the government to establish a forum where buyers can raise concerns and discuss current topics, following recent waves of labour unrest. The firms want to see a permanent liaison body and a regular review of minimum wages. Separately, moves are also underway to implement the International Labour Organization's Better Work Programme.
And the arrival of new autumn ranges coincided with cooler weather in July and helped make clothing and footwear the "brightest spot" for UK retailers during the month. Figures showed consumers responded enthusiastically to the chance to refresh their wardrobes with items they could make use of straight away.
Smart fabrics and wearable technology go hand in hand. And with strong growth forecast over the coming years, it's no wonder fashion and software companies are developing new products to tap into the ...
Esprit and Benetton have been quick off the mark to celebrate their ratings as “Detox leaders” in this year’s “Detox Catwalk” rankings. The online platform is designed to assess fashion brands’ record...
Fashion brands and retailers need to embrace “radical change” in their apparel sizing and fit strategies if they are to remain competitive in a changing environment, according to executives at a recen...
Bangladesh's textile and clothing exporters, still reeling from the impact of continuing political unrest in the country, now say they are facing a second shock wave: the freefall of the euro. Industr...
- Speed to market key to Adidas 2020 growth plan
- SuperGroup to adapt sourcing model for speed
- GAFTI gears up for change in apparel auditing
- Fast Retailing ramps up sustainability efforts
- FOCUS: Topshop suffers a setback in Japan
- Transparency call for German apparel firms
- Strike at Adidas and Nike shoe factory in Vietnam
- Myanmar garments to benefit from export strategy
- H&M and Kering trial recycling technology
- Lululemon Athletica on “strong growth” track
- Global market review of workwear - forecasts to 2019
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Outdoor performance apparel: peaks, valleys, and green fields
- Apparel Retail: Top 5 Emerging Markets Industry Guide