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

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


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