Home / Knowledge / News / Apparel/Garments / Sales drop 2.4% at Li & Fung in 2015
Sales drop 2.4% at Li & Fung in 2015
18
Mar '16
In the year ended December 31, 2015, sales dropped 2.4 per cent year over year to US $18,831 million at Li & Fung, a leader in consumer goods design, development, sourcing and logistics.

“Of this, turnover in the trading business dipped 2.8 per cent, while the logistics business continued its high growth with revenue rising 6.7 per cent,” a press release from the Hong Kong based firm stated.

According to Li & Fung, operating costs were flat in the second half of the year, despite ongoing investments in infrastructure, logistics and vendor support services.

Core operating profit in the reporting year too decreased 15.2 per cent to US $512 million over the previous year, while profit attributable to shareholders also fell 4.6 per cent to US $421 million.

In the year under review, basic earnings per share were 39.1 HK cents or 5.04 US cents, down from 41.1 HK cents or 5.29 US cents in 2014.

“Excluding the results from discontinued operations in 2014, basic earnings per share would have decreased from 50.3 HK cents or 6.46 US cents to 39.1 HK cents or 5.04 US cents,” the company explained.

According to the company, it reported results which reflect the challenging macroeconomic environment and disruption at retail.

“Despite headwinds, including downward pressures from the deflationary environment and currency depreciation, we preserved top line growth with core trading customers and increased volume,” it added.

In 2015, the company reorganised to focus even more on core customers and product innovation in three initial areas of sweaters, furniture and beauty to help customers differentiate product offerings.

Group CEO Spencer Fung said, “2015 was a challenging year as our major markets in US, Europe and Asia all experienced strong headwinds.”

“However, our business foundation remains solid and our turnover was resilient and there was an increase in trading unit volume and continued growth with our core customers,” Fung too added.

“Our logistics business continued to be high-growth despite economic challenges across Asia and in the global freight market,” he observed.

Group chairman, William Fung too said, “Brands and retailers are challenged globally, to meet evolving consumer expectations against the backdrop of weak macroeconomic conditions.”

“Vendors and factories globally need help to increase speed to market, improve margins and produce unique products for changing and demanding consumers,” the chairman noted. (AR)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 7th Dec 2016

New Texprocil chairman bats for increased UPI adoption

Ujwal Lahoti, the new Cotton Textile Export Promotion Council...

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

The new OJ 59/1 B. Courtesy: Karl Mayer

Textiles | On 7th Dec 2016

Karl Mayer unveils new LACE.EXPRESS model for apparel

Germany’s leading textile machinery firm, Karl Mayer, has launched a...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search