Shares of Li & Fung, a major supply chain manager, plummeted after the company issued a profit warning, citing difficult market conditions and reduced demand. The announcement triggered a sell-off as investors reacted to the news of potentially lower earnings.

The company indicated that the challenging global economic environment, particularly in Europe and the United States, had negatively impacted its business. Reduced consumer spending and increased competition were cited as key factors affecting Li & Fung’s performance.

Analysts have expressed concern about the company’s outlook, suggesting that the profit warning could signal a broader slowdown in the retail sector. The share price decline reflects investor uncertainty about Li & Fung’s ability to navigate the current economic headwinds and maintain profitability.

Li & Fung is taking steps to address the challenges, including streamlining operations and focusing on higher-growth markets. However, the effectiveness of these measures remains to be seen, and the company’s future performance will depend on the overall health of the global economy.