Shein reported a quarterly loss of $99 million for the first quarter ending March 31, 2026, a sharp reversal from a $395 million profit in the same period last year [1, 2, 3, 4, 5, 6]. The loss includes a non-cash $328 million accounting charge related to convertible redeemable preferred shares [1, 2, 4, 5, 6]. Despite the loss, Shein's net revenue rose slightly by about 1.1% to $9.05 billion in Q1 2026 [2, 3, 5].

For the full year 2025, Shein's net revenue increased nearly 8% to approximately $41.85 billion, while net profit declined 38.7% to around $2 billion [2, 3, 5, 6]. The company faced headwinds from rising tariffs, especially after the US removed the de minimis import duty exemption on small packages effective August 29, 2025, broadening tariff coverage globally beyond China and Hong Kong [1, 2, 4, 6]. This policy change drove a 14.3% year-on-year decline in Shein's US revenue to about $2 billion in Q1 2026 [6]. Shein's US market share of quarterly sales also dropped from 29.4% in 2023 to 22.5% in Q1 2026 [6].

The European Union also introduced a new €3 ($3.42) fee on low-value e-commerce imports in July 2026, likely increasing costs for Shein in the region [3, 4, 6]. Shein warned that disruption in Europe could "match or exceed" what it experienced in the US from tariffs and regulatory changes [6].

Shein reported 281 million active customers and over 1 billion orders in the year to end March 2026, a 16% increase over the prior year [1].

The company is preparing for a Hong Kong initial public offering after receiving approval from the China Securities Regulatory Commission on July 10, 2026, following failed attempts to list in New York and London [1, 7, 2, 4]. The IPO is expected to occur in the coming months with a target raise of $2 to $3 billion, though the final valuation depends on investor feedback [2, 4].

Shein said it is exploring measures such as raising prices in the US market to offset increased tariff-related costs: "In response to the increased duties and taxes, we are pursuing a wide range of options, including increasing our prices in the US market to offset a portion of the increased costs," the company stated [1].