Shein Reveals Growth Slowdown Ahead of Hong Kong IPO

Fast fashion giant Shein has revealed a significant slowdown in its growth ahead of its planned Hong Kong IPO. The company reported a net loss of $99 million for the first quarter of 2026, with revenue growth decelerating to a mere 1.1%. This marks the first time Shein's financial accounts have been made public through its IPO filing.

The quarterly loss was primarily attributed to an accounting adjustment of $328 million related to the valuation of convertible and redeemable preferred shares. Operating profit also saw a decline of 26%, falling to $258 million.

For the full year 2025, Shein's net profit dropped by 38.8% to $2.06 billion, down from $3.37 billion the previous year. Despite this, revenue increased by 8% year-on-year, reaching $41.9 billion.

The filing also highlighted a business slowdown in the United States, where revenues decreased by 14% in the first quarter to approximately $2 billion. Shein attributes this decline to the removal of tariff exemptions for low-value shipments. Europe emerged as Shein's primary market in 2025, accounting for 35.4% of revenue, followed by the U.S. at 24.1%. The company warned that the European Union's elimination of customs duty exemptions for shipments under 150 euros could significantly impact its operations, given Europe's substantial contribution to its sales.