The World's Largest Toy Supplier Plunges, And Says Things Aren't Good In The US And Europe

Shares of Hong Kong listed Li & Fung – the world’s largest supplier of clothes and toys to retailers – plunged 19 per cent after slowdowns in the U.S. and Europe impacted profit in the first half of the year.

The company’s profits plunged 22 per cent on as U.S. sales missed growth expectations.

The company is eyeing acquisition deals at “attractive prices in a time of global economic uncertainty”. And Li & Fung whose customers include American retailers Wal-Mart and Kohl’s now sees 62 per cent of its business is in the U.S..

This 5-day chart shows the stunning plunge in share price:

Li & Fung chart

Photo: Yahoo Finance

These two slides from its investor presentation show where its business is growing and what the company is concerned about:

li & fung presentation

Photo: Li & Fung

Li & Fung chart

Photo: Li & Fung

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