HONG KONG, March 29 (Reuters) - Global exporter Li & Fung
Ltd said on Wednesday its 2016 profit tumbled 47
percent, missing expectations, as a tough economic environment
forced retailers to reduce inventories and online rivals
threatened the firm's business model.
Li & Fung, which grew to prominence by making clothing and
toys for Western retailers, said its net profit for 2016 fell to
$223 million, from $421 million a year earlier.
Analysts were expecting a profit of $246 million, according
to Thomson Reuters SmartEstimate data.
Excluding M&A items, adjusted net profit fell 24.4 percent
to $261 million, the company said, while core operating profit
dropped 19.6 percent to $412 million.
Entering into a new Three-Year Plan, Li & Fung said an
immediate first step was to reorganize the company into two
segments, focusing on services and products.
The firm added that it will continue to invest in
infrastructure and facilities this year to enhance speed,
innovation and digitalization of the supply chain.
Shares of Li & Fung closed down 0.5 percent ahead of the
earnings announcement, lagging a 0.2 percent rise in the
benchmark Hang Seng Index.
(Reporting by Donny Kwok; Editing by Randy Fabi)