Shares of Fast-Fashion Platform Shein Fall 6% After Quarterly Profit Slides 67%
- Shein reported a return to profitability in the second quarter, posting $2.40 billion in net income and $11.08 billion in sales compared to a $99 million loss in the prior quarter.
- An increase in total orders fulfilled supported a more than 20% sequential jump in net revenue, though the Iran conflict continued to impact operations in the Middle East.
- Europe sales decreased by nearly 14% to $3,770 million, reflecting weaker volumes as the company anticipated the European Union imposing fees on low-value e-commerce parcels.
- Since the Sept 1 debut in Hong Kong, Shein shares have dropped 27.3% from the offer price, as investors fret about growth and European Union regulatory risks.
- These second-quarter results represent the first financial report for The Singapore-headquartered retailer as a public company, underscoring its initial public offering milestone.
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In the report sent on Monday to the Hong Kong stock exchange, the company indicated that, between April and June, net profit increased 247%, to about 2,398 million dollars (about 2,110 million euros), but the adjusted profit fell 66.6%, to about 228 million dollars (200 million euros).
European parcel tax hits Shein hard: prices rise, profits halve - RetailDetail EU
The new European tax on low-cost packages is hitting Shein’s pricing model hard: operating profit fell by half in the first half of the year. The Chinese fashion giant is raising its prices, cutting back on advertising, and expanding its European logistics network.
For Europe alone, turnover fell by 13.9% in the second quarter.
Observador
Correio da ManhãHigher oil prices in the face of geopolitical tensions and the rates applied by the United States and Europe have been impacting the company's performance.
Shein's shares collapsed by 11.7% on the Hong Kong Stock Exchange after China's online fashion group reported a sharp drop in quarterly earnings.
Shares of fast-fashion platform Shein fall 6% after quarterly profit slides 67% - Regional Media News
HONG KONG, Sept 29 (Reuters) - Shares of fast-fashion retailer Shein dropped more than 6% on Tuesday after it reported a 67% fall in quarterly profit, fuelling investor concerns over margin pressure and slowing growth. Jefferies analysts estimated that earnings landed more than 10% below [...]
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