Li & Fung shares dropped nearly 7 per cent in morning trading on Friday after the exporter reported worse than expected earnings and said that a three-year growth plan was no longer achievable.
Shares fell as much as 6.7 per cent and were down 5.85 per cent at HK$7.55 just after 10am.
Li & Fung, which sources and supplies consumer goods for retailers such as Wal-Mart and Target, reported on Thursday that 2014 core operating profit was down 18 per cent year on year to US$604 million, missing a US$690 million forecast by a Bloomberg poll of nine analysts. Net profit declined 11.8 per cent to US$539 million.
The apparel-to-furniture powerhouse initially targeted the core operating profit of its trading business to reach US$871 million by 2016 and that of the logistics division to double the gains from 2013.