The Chinese fast fashion colossus Shein has published detailed financial data for the first time ahead of its Hong Kong stock listing, highlighting slowing revenue growth and profitability that could weigh on the valuation of the IPO.
In the red in the quarter
In the first three months of 2026, the company posted a $99 million loss, compared to a $395 million profit in the same period last year, while revenues rose just 1.1% to $9.05 billion. The operating profit fell 26%, though Shein clarified that the quarterly loss was largely driven by a $328 million write-down of its convertible redeemable preferred shares, as noted in the filing with the Hong Kong stock exchange.
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In 2025, net profit stood at $2.06 billion, down from $3.37 billion in 2024. The weaker results risk stoking investor doubts about the sustainability of the group’s growth and may reduce the valuation it can secure on the market. Bloomberg reports that Shein aims to list as early as August and raise between $2 billion and $3 billion. “A lack of a solid fundamental growth outlook will inevitably weigh on valuations,” commented Catherine Lim, senior consumer analyst at Bloomberg Intelligence.
Investors had previously pushed for a valuation of around $30 billion in February, well below the $66 billion attributed to the company in the last 2023 financing round and the roughly $100 billion projected in 2022. The publication of financial data is part of the listing process, following years of delays and a failed attempt to list in New York and then London. Shein had previously only provided investors with high-level sales and profit figures, without a detailed operational picture.
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Major shareholders include IDG Capital, Mubadala Investment, Tiger Global Management, and HSG. For 2025, the company had indicated to investors mid-teens growth in sales, but documents show net revenues increased by just 8%, a slowdown from the 21% seen in 2024.
Tariffs and competition slow growth
Founded in China and now based in Singapore, Shein built its global success by selling low-cost clothing directly from suppliers to consumers. However, tariffs introduced by the United States and the conflict in the Middle East have driven up the cost of raw materials, translating to higher prices for customers. According to Similarweb data, global web traffic growth slowed from over 60% in the second half of 2025 to about 30% at the start of 2026, dropping to single-digit growth in June and July. App downloads also declined for much of the last twelve months.
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