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.
The explosive growth of the Bangladeshi ready-made garment industry is more likely to be accompanied by accusations of sweatshop exploitation from labour rights activists than praise for the positive ...
US retailers ramped up stocks for the start of the back-to-school season in July, pushing apparel imports for the month up by 13.4%, according to the latest data. But while China and Vietnam were the ...
US retail giant Gap Inc has made no secret of the fact that it faced - and continues to face - a number of compliance issues linked to its decision to start sourcing garments from Myanmar/Burma....
To coincide with World Water Week, which kicked off in Stockholm yesterday, the need for better use of increasingly limited water resources has turned the spotlight on the global cotton industry - one...
- Improved supplier capabilities benefit Next
- China and Vietnam lead US apparel imports in July
- THE FLANARANT: Understand win-win or lose out
- Next H1: What the analysts say
- Abercrombie & Fitch to lose logos in fashion focus
- Brandix selects first "game-changing" innovations
- Hanesbrands axes Costa Rican jobs in Vietnam move
- Bagir to invest in Ethiopia as H1 loss deepens
- TPP talks "make progress" but issues remain
- US cotton production set to decline
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global market review of denim and jeanswear – forecasts to 2020
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details