Shein swings to loss as US tariffs bite
By Josh White
Date: Monday 27 Jul 2026
(Sharecast News) - Shein swung to a $99m net loss in the first quarter of 2026 from a $395m profit a year earlier, it revealed on Monday, as revenue growth slowed to 1.1% to $9.05bn following the removal of the US de minimis tariff exemption.
The fast-fashion retailer said higher duties had weighed on US sales and that it was considering price increases, while the loss also included a $328m fair-value charge linked to convertible preferred shares.
Full-year profit fell to $2.06bn in 2025 from $3.37bn, with revenue growth slowing to 8%.
The figures were disclosed ahead of a planned Hong Kong flotation that could raise between $2bn and $3bn, although weaker growth and profitability are expected to weigh on its valuation.
Shein, which secured Chinese regulatory approval for the listing in July after abandoning attempts in New York and London, also warned that new European import measures could have an equal or greater impact than the US tariff changes, while its filing made no specific reference to allegations concerning Xinjiang cotton or forced labour.
Reporting by Josh White for Sharecast.com.
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