Sales at Li & Fung (0494.HK) sales fell last year for the first time since the company listed in 1992, declining 6% to US$13.5 billion as a result of the financial crisis, Bloomberg reported. The Hong Kong-based supply chain manager – which sources over half its goods from China – also failed to meet profit expectations, turning in a net income of US$434 million for 2009 compared to US$311.8 million the previous year. Although US retail sales are recovering somewhat, the company has been pursuing acquisitions and partnerships in a bid to retain growth. According to Bruce Rockowitz, president of Li & Fung, there are still “lots of opportunities to buy” and US$500 million has been earmarked for this purpose. Managing Director William Fung said footwear and health and beauty companies are the most likely M&A targets. The company made four acquisitions last year, including Liz Claiborne’s (LIZ.NYSE) sourcing business. It also signed an outsourcing pact with Wal-Mart (WMT.NYSE) that could generate US$2 billion in the first year.