Shein, the China‑founded fast‑fashion retailer, posted a net loss of $99 million for the first quarter, a sharp drop from the $395 million profit reported a year earlier.

The loss came as sales slowed after the U.S. scrapped a tariff exemption for low‑value goods, and the company is prepping for a planned Hong Kong listing. Quarterly net revenue grew by just 1.1%, compared with an 8.0% annual increase for 2025 and 41% in 2023. Net margin fell to -1.1%, reversing the 4.9% margin seen in 2025 and the 8.7% margin of the prior year.

The primary driver was a $328 million fair‑value charge on convertible redeemable preferred shares, whose value can fluctuate before the listing. These shares can be converted into ordinary shares later, potentially affecting the company’s equity structure. The combination of tariff changes, slower sales, and the accounting charge has left Shein in a precarious position as it seeks a Hong Kong IPO.