HONG KONG, July 27 (Reuters) - Online fast-fashion retailer Shein swung to a $99 million quarterly loss due to slowing sales after the U.S. removed an import duty exemption on small packages and a hefty one-time accounting charge.
The loss and other financial details were revealed for the first time in its draft prospectus filed with the Hong Kong stock exchange on Sunday as part of the company's much-awaited initial public offering (IPO).
The draft prospectus did not disclose the IPO size or price
range.
Below are Shein's key financial details.
• Shein's annual revenue grew from $32.1 billion in 2023 to $38.8 billion in 2024 and $41.9 billion in 2025, representing a compound annual growth rate of 14.2% over the two-year period, driven by an expanding product catalog and customer base.
• Geographically, Shein's growth has increasingly come from markets outside the United States. The relative contribution from the U.S. fell from 29.4% in 2023 to 24.1%, or $10.1 billion, in 2025, as growth slowed after Washington stopped exempting small packages from import duties.
• Europe overtook the U.S. as the company's biggest market in 2024, with revenue expanding rapidly from $10.2 billion in 2023 to $14.8 billion in 2025 to make up 35.4% of total net revenues.
• Similarly, the "Rest of the World", or markets Shein operates in outside of the U.S. and Europe, grew from $12.4 billion, making up 38.8% of revenue in 2023, to $16.9 billion, or 40.5% of revenue, in 2025, the prospectus showed.
• Total revenue in the first quarter grew by a modest 1.1% to $9 billion from a year earlier.
• Revenue from the U.S. fell 14% to $2 billion in the first quarter of 2026 from a year earlier, with its contribution to the total down to 22.5% from 26.6%.
• Shein's operating profit fell 26% in the first quarter to $258 million from a year earlier, as marketing and fulfilment costs rose while sales stagnated.
• Its operating margin dropped to 2.9% in the first quarter from 3.9% in the year-ago period. Over the past few years, its operating profit margin ranged from 2.5% in 2024 to around 4.3% in 2023.
• Shein was valued at $98.2 billion during its fundraising exercise in 2022. The valuation dropped to $64 billion two years later. It was seeking a valuation of $40 billion to $50 billion in its IPO, Reuters reported this month, citing a source.
• Product sales accounted for the vast majority of top-line performance, making up nearly 90% or $37.1 billion of revenue in 2025, while service revenues grew from $868 million to $4.7 billion during the same period.
• The fashion retailer's revenue remained concentrated in apparel, but the contribution fell from 68.8% in 2023 to 63.8% in 2025. Other goods grew faster to expand their share, rising from $10 billion to $15.1 billion.
• Shein's swing to a $99 million loss in the 2026 first quarter was mainly due to a $328 million non-cash fair-value change on convertible redeemable preferred shares, which are preferred investor stocks that convert into ordinary shares upon listing.
(Reporting by Selena Li in Hong Kong and Helen Reid in London; Editing by Sumeet Chatterjee and Sonali Paul)
