Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Li & Fung's profit slide 19%

Li & Fung’s like-for-like profits dropped 19% in the first half of the year due to a mixture of ”destocking, store closures and bankruptcies”.

The Hong Kong-based firm, which offers supply chain solutions for brands and retailers, revealed that for the six months to 30 June, core operating profit fell 18% to $124m (£96.1m), due to global shifting retail trends.

Turnover decreased by 9.6% to $5.6bn (£4.3bn), with total margin as a percentage of revenue standing at 10.5%. Despite facing global retail headwinds, the firm’s logistics business reported a 10.9% rise in turnover to $543m (£420m), with Li & Fung announcing plans to float the division as a separate entity on the Hong Kong Stock Exchange.

Spencer Fung, group chief executive of Li & Fung said: “Our customers continued to face a constantly changing retail environment and that in turn affected our performance in the first half. We have announced an aggressive plan to bring greater focus on customers, business development, production platform and digital initiatives.

“Our speed and digital modules have helped our customers achieve better operational results by increasing sell-through, reducing mark-downs and improving inventory levels, and we want to accelerate our digital strategy”.

 

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.