Shares of Shein Global Holdings Ltd. fell as much as 12.1% to a record low after the online fashion retailer reported a 53% plunge in first-half operating income in its inaugural earnings as a public company. The drop cut its market value to about $16.8 billion from roughly $26 billion at listing. Rising costs and weakening demand have squeezed margins, with deterioration accelerating in the second quarter.

The weak showing compounds a difficult start for Shein as a public company, with revenue growth and profitability deteriorating since last year. Jefferies said earnings estimates for Shein in 2026 and 2027 may be too optimistic as margins face growing pressure with the European Union eliminating a customs exemption on low-value parcels in July. US sales fell more than 10% in the three months through August and early September, according to Bloomberg Second Measure.