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 minister Smriti Irani lighting the lamp to inaugurate the 6th edition of the International Apparel and Textile Fair ‘VASTRA 2017’, in Jaipur. Courtesy: PIB

Textiles | On 22nd Sep 2017

Placement rate in textiles sector is 70%: Indian minister

The recent high growth of foreign direct investment (FDI) in the...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kerem Durdag
Biovation II LLC

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search