Shein, the fast-fashion retailer, experienced a nearly 40 percent decline in profits last year, raising concerns about its upcoming initial public offering (IPO) in the UK, as reported by Financial Timeshere.
The company’s net income dropped to $1 billion, despite a 19 percent increase in sales, reaching $38 billion, according to internal projections shared with the publication.
While Shein does not provide profit forecasts, a presentation to investors in 2023 indicated expectations of $4.8 billion in profit and $45 billion in sales for the previous year, as mentioned by the FT. The retailer did not comment on these figures.
Having been valued at $66 billion during a funding round in 2023 and peaking at $100 billion in 2022, Shein submitted confidential IPO documents in June for a London listing. However, Bloomberg News recently reported that the company might need to reduce its valuation to around $30 billion.
Originally founded in China and now headquartered in Singapore, Shein has emerged as one of the most valuable startups globally, driven by its model of high-volume, low-cost fashion.
According to earlier reports from the FT, the company may delay its listing until later this year due to US President Donald Trump’s restrictions on tariff-free imports of small goods from China.
By Valentine Baldassari
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