Li & Fung Surpasses Three-year Plan
April 7, 2008-- Home Textiles Today,
Diversified consumer products supplier and distributor Li & Fung has "successfully exceeded our original 2005-2007 three-year plan," which targeted $10 billion in revenues, by achieving total annual revenues of $11.8 billion, the company said (all figures in US$).
Marking its "strongest turnover growth since 2000," sales for the year ended Dec. 31, 2007 increased by 36% from 2006 on internal expansion and acquisitions. Alliance, an Indian home furnishings buying agency bought for $13 million in December, was one recent acquisition.
Earnings of $393.3 million were up 39.1% from $282.8 million in 2006.
Larger in apparel (and also active in cosmetics), Li & Fung in home textiles owns supplier Homestead and is a licensee of such brands as Royal Velvet, a former Pillowtex brand now owned by Iconix Brand Group.
Li & Fung said its U.S. market now represents 65% of total business — down from 72%, the result of a planned move into Europe, which now accounts for 26% of sales.
In the new plan for 2008-2010, the company is aiming for global revenues of $20 billion, with three-fourths of that to come from sourcing operations. The operating-profit goal will be $1 billion.
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