Li & Fung surpasses three-year plan
Casual Living Staff -- Furniture Today, March 28, 2008
Hong Kong – 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,” the company said sales for the year ended Dec. 31, 2007 increased by 36% from the year prior, reflecting both internal expansion and acquisitions. One of the recent acquisitions was Alliance, an Indian home furnishings buying agency for which Li & Fung paid $13 million in December.
Li & Fung is familiar to the U.S. home textiles market as the owner of supplier Homestead and as a licensee of such brands as Royal Velvet (a former Pillowtex brand, now owned by Iconix Brand Group).
Earnings for Li & Fung of $393.3 million were up 39.1% from $282.8 million in 2006.
Li & Fung, which is active in apparel, shoes and cosmetics, as well as home textiles, 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.
Time to double down: In the new three-year plan, for 2008-2010, the company said it is aiming for 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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