Shares of Li & Fung 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.

The trading company, a major supplier to retailers in the United States and Europe, indicated that its financial results would be significantly below previous expectations. This revision reflects a challenging global economic environment and shifts in consumer spending habits.

Analysts are closely monitoring Li & Fung’s performance, as it is considered a bellwether for the retail supply chain. The company’s struggles highlight the ongoing pressures faced by businesses operating in the current economic climate.

The profit warning has raised concerns about the broader outlook for the retail sector and the potential impact on other companies in the supply chain.