Li & Fung Limited pointed to nascent economic recovery in the U.S. and recent acquisitions and outsourcing deals led to record core operating profit growth of 55% for the first six months of 2010.
Li & Fung sales reached HK$51.8 billion ($6.6 bn) in the six months ended June 30, up 12% from the comp period in 2009. Core operating profit increased to HK$2.6 billion on the back of continued growth in the higher-margin onshore businesses of the U.S. and Europe, disciplined cost control and the provision of more value-added services.
In related news, the Hong Kong-based sourcing giant disclosed that it acquired New York-based Jimlar Corporation, owner of the Frye, RJ Colt and Mountrek footwear brands. Jimlar also owns licenses to make footwear under the Coach and Calvin Klein trademarks and provides design and sourcing services that help retailers develop their private label business.
