Li & Fung says Wal-Mart has not canceled orders; shares slide
HONG KONG (Reuters) - Global exporter Li & Fung Ltd (0494.HK) said business with its major customer Wal-Mart Stores Inc is normal, but its shares still slid as much as 4.9 percent on a report that the U.S. retailer is cutting orders to suppliers.
"There has been no cancellation of orders from Wal-Mart and we continue to do business with them as usual. Also, Wal-Mart is continuing to place orders for 2014 as normal," a spokeswoman from Li & Fung said in an email reply to Reuters.
Wal-Mart's shares fell 1.5 percent on Wednesday after a report by Bloomberg News said the retailer is cutting orders with suppliers this quarter and next quarter to address rising inventories.
A Wal-Mart spokesman told Reuters the story was "completely inaccurate".
Shares of Li & Fung, which has a market value of $12.7 billion, fell to the lowest in four weeks at HK$11.20. The stock was at HK$11.30 as at 11.24 p.m. EDT on Wednesday, down 3.9 percent, lagging a 0.5 percent fall in the benchmark Hang Seng Index .HSI.
Last month Li & Fung, the world's largest supplier of goods to retailers including Wal-Mart and Target (TGT.N), reported a 70 percent drop in first-half net profit but said it was on track for a recovery in 2013.
(Reporting by Donny Kwok; Editing by Anne Marie Roantree and Michael Urquhart)