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 Amazon.com Inc.
“Read the Full Article at www.bloomberg.com >>>>”