Li & Fung Ltd., the world’s largest supplier of clothes and toys to retailers, said it will miss its 2013 profit target after net income dropped for the first time in four years as a sluggish U.S. economy damped demand.
Anti-China protests escalated in Vietnam as attacks on Taiwanese companies left two people dead and at least 129 injured, while more foreign-owned factories shut production and Chinese workers fled the country.
Li & Fung Ltd. said its unit supplying Wal-Mart Stores Inc. will be profitable this year and that the retailer ended an option to buy the subsidiary because it had become “comfortable” with the relationship.
Li & Fung Ltd. jumped the most in more than five years in Hong Kong trading after saying it will spin off a branded business whose products include Coach Inc. shoes and posting profit that beat analyst estimates.
Li & Fung Ltd.’s unit supplying Wal-Mart Stores Inc. will be profitable this year after the world’s largest retailer ended an option to buy the subsidiary, which led the Hong Kong company’s shares to fall last week.