Shein, the Singapore-based fast-fashion retailer founded in China, has disclosed a $99 million quarterly loss for the first quarter of 2026 as it moves forward with its initial public offering (IPO) on an exchange referred to as Hong Kong. The loss marks a sharp reversal from a net income of $395 million in the same quarter a year earlier, according to financial filings ahead of the listing.

The company attributed the loss partly to a $328 million fair-value charge on convertible redeemable preferred shares, while noting that changes in trade policies had hurt its business. The U.S. removed the de minimis import duty exemption on small packages, and the European Union imposed a €3 fee on low-value e-commerce imports — both measures affecting Shein’s core cross-border model.

14.3%

Decline in Shein's U.S. quarterly revenue year-over-year to $2.04 billion

U.S. revenue fell 14.3% to $2.04 billion in the first quarter, compared with $2.38 billion a year earlier. The U.S. share of Shein’s quarterly revenue dropped to 22.5%, down from 29.4% of annual revenue in 2023. Shein said the removal of the de minimis exemption had an 'adverse impact' on sales in the U.S. and that Chinese-origin products it ships are subject to tax rates of 10% to 87.5% when entering the U.S. The company warned that trends in the EU could be generally in line with or exceed the impact observed in the U.S.

Shein has considered increasing prices in the U.S. market to offset higher duties, according to its filing. The company’s U.S. exposure has already diminished: Europe accounted for about one-third of revenues in 2025.

For the full year 2025, net income fell 38.7% to $2.06 billion, even as revenues grew 8% to $41.85 billion. Operating margin narrowed to 2.9% in the first quarter of 2026 from 3.9% a year earlier. More than 90% of Shein’s net revenue came from products stored in Chinese central warehouses in 2025.

IPO details and valuation

Shein won approval from the China Securities Regulatory Commission (CSRC) for its IPO on July 10, 2026, and is seeking a valuation of $40–50 billion — down from a reported $100 billion valuation in 2022. Goldman Sachs, Morgan Stanley and JPMorgan are joint sponsors of the listing. The company plans to use proceeds to improve technology, raise brand awareness, expand global presence, promote corporate responsibility, and for general corporate purposes.

Shein was founded in Nanjing and is now headquartered in Singapore. Founder Sky Yangtian Xu serves as chairman and CEO. Pre-IPO investors include IDG, Sequoia Capital, HongShan, Tiger Global, Boyu, Brookfield and General Atlantic. Donald Tang is no longer listed among directors or senior management.