Shein Reports $99 Million Loss Ahead Of Hong Kong IPO Listing
Shein said U.S. tariffs and a $328 million accounting charge pushed quarterly profit into the red as it prepares investor roadshows for its Hong Kong listing.
- On Sunday, July 26, 2026, Shein released a draft prospectus for its Hong Kong IPO, reporting a US$99 million quarterly loss for early 2026 compared to US$395 million in net income the previous year.
- Financial filings showed Shein's 2025 net income fell 38.7 per cent to US$2.064 billion, while annual revenue grew 8 per cent to US$41.8 billion, a slowdown from the 20.7 per cent growth seen in 2024.
- Slowing sales followed the removal of the de minimis import duty exemption, which Shein said had an "adverse impact" on sales; The European Union also imposed new fees on low-value e-commerce imports in July.
- Seeking a valuation between US$40 billion and US$50 billion, Shein appointed Goldman Sachs, Morgan Stanley, and JPMorgan as joint sponsors for the listing following China Securities Regulatory Commission approval on July 10.
- Operational margins dropped to 2.9 per cent in the first quarter as revenue in Shein's biggest market fell 14.3 per cent, reflecting heavy reliance on Chinese central warehouses accounting for over 90 per cent of net revenue.
96 Articles
96 Articles
Shein reported a loss of $99 million in the first quarter of 2026, a sharp twist against the $395 million profit he had earned a year earlier. The fast fashion giant attributes the result to the end of the tariff exemption that allowed sending cheap packages to the United States without paying taxes. The collapse arrives just as the company prepares for its stocking in Hong Kong. The fall is explained above all by the end of the "de minimis" rul…
Shein reports $99 million Q1 loss after de minimis rule ends
By Rajwa Quasim Fast fashion retailer Shein reported a $99 million loss in the first quarter due to weaker sales after U.S. removed duty-free exemptions for small imports along with larger one-time accounting charge, as per its pre-IPO filing released on Sunday. It moves ahead with plans for an initial public offering (IPO) in Hong Kong. Pre-IPO showed that Shein had a loss in Q1 when compared with a net income of $395 million a year earlier. Th…
DECRYPTAGE - To the general surprise, China's ephemeral fashion giant fell into red in the first quarter, with a net loss of $99 million.
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