News Flash

Li & Fung reports strong sales and profit growth in 2005

22 Mar '06

4 min read

Bruce Rockowitz, President of Li & Fung (Trading) Limited, said, “The removal of the textile quota system during the year created great changes in the sourcing markets, particularly with the subsequent textile safeguards placed on China by the US and the EU. The Group was well prepared for these developments, and during this time our geographically diversified and flexible sourcing network proved invaluable to our customers.”

“The Group will continue to strengthen its presence in markets that are expected to benefit from the new trade regime, particularly South Asia and South East Asia,” he added.

During 2005, the Group launched two more labels under the brand strategy, namely Levis RedTab tops and Royal Velvet. Despite some start-up teething problems during the initial phase, the brands enjoyed positive response from retailers and consumers.

The acquisition of Briefly Stated Holdings Inc, an apparel company in the US with a portfolio of more than 40 character brand licenses, also greatly strengthened the Group's capabilities and portfolio of brand licenses.

Fung said, “The Group is pleased with its good start to the Plan. We were able to see an accelerated growth rate compared to 2004 in the face of uncertainties brought by the economic environment as well as the dismantling of the textile quota system. We feel that this strong growth momentum is set to continue for 2006.”

“2006 is a special year for the Group as we celebrate the trading business' 100th year in history. It is increasingly apparent that the Group's size and leadership position are creating new business opportunities that did not exist before, as we now have the capability to offer complete outsourcing solutions to even very large customers. The trend towards retailers outsourcing their in-house buying functions will continue.”

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