Sales at supply giant Li & Fung rose 25% to HK$47.3 billion (£3.24bn) for the six months ended June 30, thanks to strong growth in European markets.
Operating profit increased by 30% over the period to HK$1.5bn (£102.8 million), which is in line with the company’s three-year target plan.
Li & Fung group managing director William Fung said: “We are pleased to report strong growth in the first half of this year. The macroeconomic conditions were challenging but we were successful in gaining market share during this period. We have also been successful in diversifying geographically, with our share of European business growing from 23% to 30% in the first half. The growth is driven by our increase in business with the Arcandor Group (a German retail group) and Tommy Hilfiger’s European business.”
Separately, Li & Fung has bought Van Zeeland, the US-based importer of mid-market and bridge-level handbags, for US$330m (£17.6m). Its brands include Kathy Van Zeeland, B Makowsky and Tignanello.
The brands are stocked in 1,300 US outlets including Macy’s. Kathy Van Zeeland and Bruce Makowsky remain co-presidents of the Van Zeeland business. Li & Fung said the deal would make it the US’s leading handbag supplier.