Company incurred SHEIN Quarterly loss amounted to 99 million dollars In the first quarter of 2026, compared to a net profit of $395 million In the same period last year, as a result of a slowdown in sales after the United States canceled the customs exemption on small packages, in addition to incurring exceptional accounting fees, according to the draft prospectus for its initial public offering in Hong Kong.
The documents, which pave the way for investor promotion rounds and building the subscription record, showed that the company has not yet revealed the size of the offering, the share price, the listing timetable, or the value of the expected returns.
On July 10, the Chinese Securities Regulatory Commission approved the listing of Shein on the Hong Kong Stock Exchange, after its previous attempts to list in New York and London faltered.
The company explained that the first quarter’s losses were also affected by the recording of… Accounting charges of $328 million Associated with the revaluation of redeemable convertible preferred shares are accounting losses that do not necessarily reflect their operating performance.
Shein confirmed that the United States’ cancellation, since May 2025, is an exemption “De Minimis”which allowed the entry of parcels with a value of less than $800 Without customs duties, it negatively affected its sales in the American market, its largest market, and raised its operational costs, noting that products shipped from China to the United States became subject to duties ranging from 10% and 87.5%.
The company added that it is considering a range of options to confront the high fees, including: Raising prices in the American market To offset part of the additional costs.
SheIn’s revenues in the United States decreased by 14.3% to $2.04 billion During the first quarter, compared to$2.38 billion A year ago, while the US market’s contribution to total quarterly revenues declined to 22.5%.
The company also warned that its business in Europe, which represents about a third of its revenues, could be affected after the European Union imposed duties of $100,000 3 euros on low-value e-commerce imports, considering that the impact of these measures may equal or exceed what it witnessed in the United States.
In 2025, Shein’s net profits will decline by 38.7% to $2.06 billionWhile revenues increased by 8% to $41.85 billionwhich is a slower growth rate compared to an increase of 20.7% In 2024, the operating profit margin also decreased to 2.9% In the first quarter of 2026 vs 3.9% A year ago.
The company is targeting a valuation ranging between 40 and 50 billion dollars In its upcoming launch, compared to a valuation of about 100 billion dollars During a financing round in 2022, according to Reuters. She also explained that the proceeds from the IPO will be used to develop technology, enhance the brand, global expansion, support corporate responsibility initiatives and general corporate purposes.
