Li & Fung spinning off the Brand and Licensing Business
Published By : 10 Jul 2014 | Published By : QYRESEARCH
Global Brands manages over three hundred fifty labels which include the Coach Inc. shoes and many licensed characters such as Spiderman and Angry Birds. This organization has started trading at HKD 2.09 and has unchanged so far.
Li & Fung, a Hong Kong based company is spinning off the brand and licensing business to pay more attention on its core businesses, which are of supplying toys and clothes to its global retailers like Kohl’s Corp and Wal-Mart Stores Inc. However, it has not increased any funds with this spinoff.
The CEO of the organization stated that they were now focusing below the luxury line, which is the more affordable luxury that is fairly new to this part of the world. He also said that they have some incredible brands which are now at the beginning growth stages which they are promoting now to U.S., Europe, and Asia.
The company Global Brands said that they had no near future plans to raise funds and is comfortable with the current debt level. Also, the company will seek for bank financing to make substantial acquisitions in the coming future.
According to a market analyst based in Hong Kong, the company Global Brands has potential for high growth. It is ready to create a life of its own. However, the analyst said that they will see the scope of the organization to upgrade its license portfolio in the near future. The analyst has forecasted compound annual growth rates related to core operating profit and sales.