Shein Returns to Profit, Europe Sales Down 14%
Shein posted $2.40 billion in quarterly profit as investors weighed weaker Europe volumes and a 27.3% drop in its Hong Kong shares since listing.
- Shein reported a return to profitability in the second quarter, posting $2.40 billion in net income and $11.08 billion in sales compared to a $99 million loss in the prior quarter.
- An increase in total orders fulfilled supported a more than 20% sequential jump in net revenue, though the Iran conflict continued to impact operations in the Middle East.
- Europe sales decreased by nearly 14% to $3,770 million, reflecting weaker volumes as the company anticipated the European Union imposing fees on low-value e-commerce parcels.
- Since the Sept 1 debut in Hong Kong, Shein shares have dropped 27.3% from the offer price, as investors fret about growth and European Union regulatory risks.
- These second-quarter results represent the first financial report for The Singapore-headquartered retailer as a public company, underscoring its initial public offering milestone.
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15 Articles
The fast fashion platform Shein recorded a sharp drop in sales in Europe in the second quarter, after increasing prices and reducing online advertising in anticipation of the European Union's charging of low-value e-commerce orders from July 1st. Since its launch on the Hong Kong Stock Exchange on September 1st, Shein's shares accumulated a fall of 27.3% compared to Hong Kong's bid price of 48.56 dollars per share, as investors expect the rates …
"We expect the environment to remain uncertain in the second half of 2026, given the counter-winds of tariffs and the continuing volatility of logistics costs," said Shein President Sky Xu.
The Economic Times
Shein returns to profit in second quarter, but warns of uncertain second half
An increase in total orders fulfilled supported a more than 20% sequential jump in Shein's second-quarter net revenue, although the Iran conflict continued to impact its Middle East operations.
The online retailer Shein returned to profit in the second quarter and reported months sales of 11.08 billion dollars, but warned about the uncertainties in the second semester, with the occasion of the publication of the first results since the company was listed, transmits Reuters, writes Agerpres. The increase in total orders supported the increase of more than 20% of net revenues [...]
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