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Li & Fung Sees Difficult Year After Earnings Beat Estimates

  • Company sees little indication of economic, retail turnaround
  • Fast fashion, online retailers competition pressure margins
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Li & Fung Ltd., which supplies clothing and toys to major retailers such as Wal-Mart Stores Inc. and Kohl’s Corp., expects this year to be challenging after it reported 2015 earnings that exceeded analysts’ expectations.

Net income fell 4.6 percent to $421 million in the 12 months ended December, beating an average estimate of $405.3 million from nine analysts compiled by Bloomberg. Sales decreased 2.4 percent to $18.8 billion, according to the Hong Kong-based sourcing company Thursday.