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.
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DECRYPTAGE - To the general surprise, China's ephemeral fashion giant fell into red in the first quarter, with a net loss of $99 million.
The provisional prospectus of its introduction to the Stock Exchange is a wealth of information on the online retail platform of clothing at low prices.
The Chinese ultra-fast fashion retailer Shein saw its revenue in the US drop by 14 percent since online packages are no longer exempt from import tax. In Europe, Shein expects a similar effect, now that a comparable exemption has been scrapped as of July 1.
Chinese online retailer Shein posted a loss of $99 million (€87 million) in the first three months of the year, the company said ahead of its planned listing on the Hong Kong stock exchange. Shein had a profit of $395 million (€347.2 million) in the same period last year.
Shein is the third largest fashion company in the world. In the third attempt, the company wants to finally go on the stock market. However, the company makes hardly any profits and grows only slowly.
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