Shein posts quarterly loss ahead of Hong Kong listing

Fashion retailer Shein reported a nett nonaccomplishment of $99m for the 4th ended 31 March 2026, compared with a nett of $395m successful the aforesaid play a twelvemonth earlier, according to fiscal filings issued up of its planned Hong Kong listing.

The institution said the quarterly nonaccomplishment was chiefly owed to a $328m fair-value nonaccomplishment related to convertible redeemable preferred shares.

The disclosure forms portion of Shein's listing documents for Hong Kong.

The filing shows that respective details of the offer, including the fig of shares, pricing and parts of the timetable, person been redacted.

The China Securities Regulatory Commission cleared Shein's Hong Kong listing connected 10 July, aft the company's earlier attempts to spell nationalist successful New York and London did not proceed.

The filing pointed to the withdrawal of the US "de minimis" exemption since May 2025 arsenic a origin weighing connected the business.

The exemption allowed shipments valued nether $800 to participate the US from China without tariff exemptions, taxable to applicable rules.

Its removal, the institution said, has had an "adverse impact" connected US income and wide gross growth, and has pushed up fulfilment costs arsenic a stock of revenue.

Chinese-origin goods bought from Shein oregon via its marketplace and shipped to the US present look taxation rates of betwixt 10% and 87.5%.

"In effect to the accrued duties and taxes, we are pursuing a wide scope of options, including expanding our prices successful the US marketplace to offset a information of the accrued costs", the institution said successful the filing.

In the archetypal quarter, Shein's US gross fell 14.3% year-on-year to $2.04bn from $2.38bn.

The US accounted for 22.5% of full gross successful the 3 months to 31 March 2026.

Europe accounted for astir a 3rd of Shein's gross past year.

The filing said goods shipped to Europe, which had antecedently benefited from the EU's €150 ($171.21) customs work exemption, are present facing higher associated costs aft the EU imposed a €3 interest connected low-value e-commerce imports this month.

On the imaginable effect successful Europe, the institution said: "Although it remains excessively aboriginal to afloat assess, it is imaginable that trends successful the EU could beryllium mostly successful enactment with oregon transcend the interaction observed successful the US aft the removal of the US de minimis exemption."

For the afloat 2025 fiscal year, Shein's nett income fell 38.7% to $2.06bn portion gross accrued 8% to $41.84bn.

The filing said this compared with maturation of 20.7% successful 2024. Operating borderline was 2.9% successful the archetypal 4th of 2026, down from 3.9% a twelvemonth earlier.

Shein said listing proceeds would beryllium utilized to fortify technological capabilities, physique marque awareness, grow its planetary footprint, enactment firm work initiatives and for wide firm purposes.