Shein reported a net loss of $99 million for the first quarter of 2025. This performance marks a significant shift from the previous year, when the company recorded a net income of $395 million during the same period.
Net loss incurred in Q1 2025 (compared to +$395 million in 2024).
The reported losses included a paper loss of $328 million resulting from an accounting change specifically regarding special investor shares.
Paper loss due to accounting changes for special shares.
Despite the quarterly financial dip, Shein maintains a massive user base. The company reported 281 million active customers for the year ending March 2026, representing an increase of over 16% compared to the previous year.
Total customer orders in the year ending March 2026.
Impact of Trade Policy and Market Dynamics
Shein attributed the decline in U.S. sales and net revenue growth to the removal of the 'de minimis' exemption. Previously, this rule allowed goods valued at $800 or less to enter the United States without incurring tariffs.
The transition occurred following an executive order signed by U.S. President Donald Trump on August 29, 2025, which ended the global de minimis tariff exemption.
Shein is considering increasing prices in the US market to offset increased duties and taxes.
External geopolitical factors have also influenced operations. Shein stated that the Iran war affected demand, increased costs, and caused delivery delays across several markets.
International trade hurdles are not limited to the U.S.; the European Union implemented a €3 levy on low-value e-commerce imports in July 2025.
Corporate Expansion and Status
Based in Singapore and founded in China, the company received approval from the China Securities Regulatory Commission on July 10, 2025, for a planned share sale in Hong Kong.
While the share sale was approved, specific details regarding the size, pricing, or timetable of the Hong Kong initial public offering were not disclosed.