Shein Posts $99 Million Q1 Loss Ahead of Hong Kong IPO as U.S. Tariffs Bite

2 articles · Updated · CNBC · Jul 26

$99 million in first-quarter loss marked a sharp reversal from $395 million in profit a year earlier, according to Shein's pre-IPO filing for its planned Hong Kong listing.
A $328 million fair-value charge on preferred shares and weaker U.S. sales after Washington ended the de minimis duty exemption drove the swing, with Chinese-origin goods now facing 10% to 87.5% U.S. tax rates.
U.S. revenue fell 14.3% to $2.04 billion, and Shein said it is raising U.S. prices to offset higher costs; operating margin narrowed to 2.9% from 3.9%.
The filing also flagged fresh pressure in Europe, where a new 3 euro fee on low-value e-commerce imports could match or exceed the U.S. impact on growth.
The prospectus came after China cleared the Hong Kong float on July 10, but Shein still withheld deal size, price and timing as it seeks a reported $40 billion to $50 billion valuation.