Shein seeks fast-fashion deals to spur growth after IPO

Shein has secured a stock-market listing after years of failed attempts, but investors have yet to embrace its plan to become more than a fast-fashion company. With $15 billion in cash listed in its prospectus and another $1.74 billion raised in the IPO, the retailer is preparing for an acquisition-led expansion.

The company confirmed plans to buy U.S. brand Everlane for $80 million. Shein wants to build a platform that sells its own labels alongside acquired brands, all connected to its fast supply chain and broad customer base. A source familiar with the situation described the Everlane transaction as a “dry run” for a strategy that will target brands across different price ranges.

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dry run

The market response has been weak. Shein shares closed on Friday at 38.14 Hong Kong dollars, or $4.86, more than 20% below their offer price. The Hong Kong listing followed years of attempts to list in New York and London that ran into regulatory obstacles.

Louise Deglise-Favre, lead apparel analyst at GlobalData, said investors had not yet priced in a successful shift toward a brand and platform business. Building “a meaningful brand portfolio” would take years, she said, while Shein’s revenue is already feeling the effect of U.S. President Donald Trump’s decision to remove duty-free de minimis access for small parcels. Sales growth slowed to 1.1% in the first quarter of 2026, from 8% in 2025.

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a meaningful brand portfolio

Shein said one priority was bringing more brands into its Xcelerator program, which offers access to manufacturing, warehousing, logistics and its global sales platform. A company spokesperson said, “We see significant potential to build on the track record we have established with successful brands such as Missguided.” Shein acquired the British retailer in 2023.

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We see significant potential to build on the track record we have established with successful brands such as Missguided.

The Everlane deal also exposes a reputational challenge. Reports of the acquisition prompted an angry reaction from Everlane customers, who associate the brand with high-quality, sustainably made basics. Everlane promotes slogans including “Radical Transparency” and “Clean Luxury”, uses mainly organic materials and provides details about the factory making each item.

Shein’s clothes are mostly made from polyester, and its website does not identify the country or factory where each garment is produced. In a letter seen by Reuters, Everlane CEO Alfred Chang told employees that the brand would remain independent and maintain its sustainability commitments. He said the acquisition would help Everlane strengthen its competitive position and reach more customers globally.

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Radical Transparency