AdvertisementIPOBusinessBanking & Finance
Fast-fashion giant Shein swings to US$99m first-quarter loss ahead of Hong Kong listing
Tariffs, war and rising costs squeeze company’s margins as IPO looms, testing investor appetite for fast-fashion
2-MIN READ2-MIN Listen
Zoe SL ChanPublished: 11:00am, 27 Jul 2026E-commerce giant Shein swung back to losses in the first quarter of 2026 as rising Western tariffs squeezed margins, according to its Hong Kong listing prospectus on Sunday.
The Singapore-headquartered fast-fashion retailer, founded in China, recorded a US$99 million loss in the three months to March, reversing a US$395 million profit a year earlier. Net revenue edged up 1.1 per cent to US$9.05 billion in the same period.
For full-year 2025, Shein’s net revenue rose nearly 8 per cent to US$41.85 billion, while net profit slumped 38.7 per cent to US$2 billion.
The filing showed Shein was facing multiple risks in 2026, warning that net revenue, operating profit and net profit were being pressured by tariffs, potential pricing pressures, weaker regional demand and higher logistics and material costs.
The Iran war has hit consumer demand in the Middle East, with regional activity down year on year and expected to dent 2026 net revenue.
The European Union, accounting for about a third of Shein’s net revenue in 2025 and the first quarter of 2026, imposed a €3 (US$3.42) fee on low-value e-commerce imports this month, raising selling costs and likely hurting short-term volumes, Shein said.
AdvertisementSelect VoiceSelect Speed00:0000:001.00x