World’s largest retail supplier of clothes and toys surges most in almost two years
Bruce Rockowitz, chief executive officer of Li & Fung: says orders for the second half of the year are “solic”. Photograph: Jerome Favre/Bloomberg
Li and Fung Ltd, the world’s largest supplier of clothes and toys to retailers, has surged the most in almost two years after saying its business is recovering and operating earnings are set to pick up later this year.
The outsourcer rose as much as 9.5 per cent to HK$11.54 in Hong Kong, headed for the biggest gain since November 2011. Orders for the second half were “solid,” chief executive officer Bruce Rockowitz said.
Li and Fung, whose customers include Wal-Mart Stores, and Target, has been pushing to revive its US unit after weaker demand has hurt those operations. “The worst is behind us and we are on track to recovery in 2013,” the company said.
Net income fell 16 per cent to $96 million for the six months ended June from a year earlier. Core operating profit rose 1 per cent, to $223 million in the first half. – (Bloomberg)