Shein Swings to $99 Million Q1 Loss as Trump Ends $800 Duty-Free Import Rule
Updated
Updated · bbc.co.uk · Jul 27
Shein Swings to $99 Million Q1 Loss as Trump Ends $800 Duty-Free Import Rule
3 articles · Updated · bbc.co.uk · Jul 27
Summary
$99 million in first-quarter losses marked a sharp reversal for Shein from $395 million in net income a year earlier, as the fast-fashion group said US sales slowed after Washington scrapped duty-free treatment for small parcels.
The filing said the end of the US de minimis exemption for packages worth $800 or less hurt sales growth and raised costs, prompting Shein to consider higher US prices; the Iran war also weakened demand and delayed some deliveries.
A $328 million paper loss tied to an accounting change for special investor shares also weighed on the quarter, even as Shein reported 281 million active customers and more than 1 billion orders in the year to March.
The results come as Shein prepares for a Hong Kong IPO expected in coming months after winning Chinese regulatory approval on July 10, following failed listing attempts in New York and London.