Li & Fung sees more outsourcing deals, U.S. recovery

HONG KONG, April 28 (Reuters) - Consumer goods exporter Li & Fung Ltd (0494.HK), which manages supply chains for retailers such as Wal-Mart Stores Inc (WMT.N) and Target Corp. (TGT.N), expects to sign more outsourcing deals within months as cash-strapped retailers in the United States look to cut costs in the economic downturn.

Despite the slump in the economy, Li & Fung President Bruce Rockowitz said he is optimistic that the current retail environment in the United States is close to a bottom, adding the company snapped up more orders from existing customers in the past six weeks.

The outsourcing deals in 2009 could be similar in size to the one the firm signed with fashion retailer Liz Claiborne Inc LIZ.N, Rockowitz told Reuters in an interview on Tuesday.

"Some will be surprisingly big," he said, but declined to be more specific.

In 2009, Li & Fung could sign a similar number of outsourcing deals to the four signed last year, Rockowitz said. The 2008 deals included those with Sanrio (8136.T), Timberland and Mexx.

On February 23, Li & Fung agreed to pay $83 million to become fashion company Liz Claiborne's primary global sourcing agent for apparel and accessories. In return, Liz Claiborne will pay an agency commission of its product purchases through Li & Fung.

Li & Fung expects to sign an outsourcing deal with loss-making U.S. retailer Talbots Inc (TLB.N) within the next 45 days, Rockowitz said.

(Reporting by Sui-Lee Wee, Editing by Ken Wills)