HeadlinesBriefing favicon HeadlinesBriefing.com

Shein Q1 loss before Hong Kong IPO

Financial Times Companies •
×

Shein fell to a $99mn net loss in the first quarter as US and EU trade tensions hit its जिसके.

Net profit margins narrowed sharply to 4.9% in 2025 from 8.7% in 2024 after Washington scrapped a tariff exemption for small packages that the retailer had used to ship directly into the US.

In response to the increased duties, the company said it is pursuing options such as raising prices in the US market and using long‑term logistics contracts to limit higher oil costs.

The EU launched an investigation into the sale of “illegal products”, and Shein’s IPO remains confidential, exposing the risk of escalating trade tensions and its heavy reliance on Chinese manufacturers, despite attempts to diversify to smiles like Turkey.