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.
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.’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.
Consumers are spending in the U.S. in the holiday season, as retailers run promotions, Li & Fung Ltd.’s Chief Executive Officer Bruce Rockowitz said in an interview with Bloomberg Television’s Susan Li.
Li & Fung Ltd., the world’s biggest supplier of clothes and toys to retailers including Wal-Mart Stores Inc., rose the most in more than a year in Hong Kong trading after first-half profit beat all analysts’ estimates.