Li & Fung Plunges After Wal-Mart Predicts Earnings Decline



By Stephanie Wong

Li & Fung Ltd., the global sourcing company, dropped the most in more than four months in Hong Kong trading after its biggest customer, Wal-Mart Stores Inc., predicteda decline in annual earnings.
The Hong Kong-based company plunged as much as 7 percent to HK$5.86, the biggest intraday loss since May 26. The city’s Hang Seng Index gained 0.9 percent. Wal-Mart shares tumbled 10 percent at the close in New York Wednesday, the biggest one-day drop since January 1988.
Earnings will decrease 6 percent to 12 percent in fiscal 2017, which ends in January of that year, the Bentonville, Arkansas-based company said at its investor day on Wednesday. Analysts had estimated a gain of 4 percent on average, according to data compiled by Bloomberg.

The dour outlook follows a protracted sales slump at Wal-Mart’s U.S. stores and mounting concern that the chain is losing ground to online competition such as Inc.
“Read the Full Article at >>>>”

Due to the nature of independent content, VT cannot guarantee content validity.
We ask you to Read Our Content Policy so a clear comprehension of VT's independent non-censored media is understood and given its proper place in the world of news, opinion and media.

All content is owned by author exclusively. Expressed opinions are NOT necessarily the views of VT, other authors, affiliates, advertisers, sponsors, partners or technicians. Some content may be satirical in nature. All images within are full responsibility of author and NOT VT.

About VT - Read Full Policy Notice - Comment Policy