Shein slides into loss as trade frictions loom before HK listing
Shein posted a net loss of $99 million for the latest quarter ahead of its planned Hong Kong IPO, with profit margins narrowing to 4.9% in 2025 from 8.7% in 2024, as higher US/EU duties weigh on costs and demand. The firm says it may lift US prices to offset duties, and its US revenue share has fallen from 30% of sales in 2023 to 22% this year. While expanding into new markets, it faces EU probes into illegal products and ongoing supply-chain scrutiny, remains heavily reliant on Chinese factories, and is exploring diversification to Turkey ahead of listing.
