BRIEF: Shein profit tumbles 40% as competition heats up

Fast fashion e-commerce company Shein’s sales rose 19% last year to $38 billion, but its profit tumbled nearly 40% to $1 billion amid stiff competition, the Financial Times reported on Sunday, citing unnamed sources familiar with the matter. The falling profits are pressuring Shein’s valuation as it aims to make a London IPO later this year.

The company was valued at $66 billion during its most recent funding in 2023. But much has changed since then, including growing competition from Chinese rival Temu and the threat of new trade barriers that would make its products more expensive in the U.S. As its profits get squeezed, some of the company’s investors and other stakeholders are pressuring it to lower its valuation to around $30 billion, according to the Financial Times report.

Shein originally aimed to list in the U.S., but later changed its plans to a London listing after meeting with opposition from American politicians. Previous reports said it was aiming to list as early as April this year, but it has delayed that to the second half of the year following recent actions against the company by President Donald Trump in the U.S., its largest market.

By Doug Young

To subscribe to Bamboo Works weekly free newsletter, click here