Chinese e-commerce behemoth Shein saw its net profit plummet by almost 40 % last year. These poor results, combined with the uncertainty about American and European import duties, are increasing the question marks surrounding the company’s planned IPO.
Below expectations
Although Shein’s turnover rose by 19% to 38 billion dollars (36 billion euros) in 2024, net profit fell below a billion dollars (900 million euros) again, the Financial Times reports based on internal sources. That is well below expectations: the fashion app had forecast a turnover of 45 billion dollars and a net profit of 4.8 billion dollars. The increased competition from Chinese e-commerce rival Temu is a major threat to the company.
The disappointing results increase doubts about Shein’s planned IPO. The retailer is under pressure from investors to significantly reduce its valuation from more than fifty to around thirty billion euros. The threat of both European and American import duties could put further pressure on turnover and profit. Last week it became clear that the company might postpone its IPO until the second half of the year.
