Shein posts $99 million Q1 loss ahead of Hong Kong IPO
Shein reported a net loss of $99 million for the first quarter of 2026, a reversal from the $395 million profit it posted in the same period a year earlier. The loss was driven by slower sales after the United States ended its de‑minimis duty‑free exemption for parcels under $800 – a policy change that took effect in May 2025 and imposed tariffs of 10 % to 87.5 % on Chinese‑origin goods – and by a $328 million fair‑value accounting charge on convertible redeemable preferred shares.
Revenue rose 1.1 % to $9.05 billion, but U.S. revenue fell 14.3 % year‑on‑year to $2.04 billion, reducing the United States share of total sales to 22.5 %. Shein said it had 281 million active customers at the end of March 2026, up more than 16 % from a year earlier. The China Securities Regulatory Commission approved Shein’s Hong Kong listing on 10 July, clearing the way for an IPO after earlier attempts in New York and London were abandoned. The prospectus, filed in July, disclosed that the four co‑founders own 65 % of the Cayman‑registered holding company Shein Global Holdings Ltd, while the remainder is held by investors such as IDG and Sequoia Capital. The filing did not reveal the size, price, or timetable of the share offering, which is expected to take place in August or September.
Entities: China Securities Regulatory Commission · Donald Trump · Goldman Sachs · Hong Kong Stock Exchange · Shein · Sky Yangtian Xu · United States
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 15 SOURCES] The China Securities Regulatory Commission approved Shein’s Hong Kong share sale on 10 July. (CSRC)
- [● 5 SOURCES] Shein’s four co‑founders own 65 % of the Cayman‑registered holding company Shein Global Holdings Ltd. (Shein)
- [● 3 SOURCES] Shein reported a net profit of $2.064 billion for fiscal year 2025. (multiple articles)
- [● 3 SOURCES] Shein's net profit fell 38.7% year‑on‑year from $3.365 billion in 2024. (multiple articles)
- [● 3 SOURCES] Shein's previous attempts to list in New York and London were abandoned after regulatory obstacles. (multiple articles)
- [● 16 SOURCES] Shein posted a $99 million net loss in the first quarter of 2026. (Shein)
- [● 3 SOURCES] Shein's revenue for 2025 was $41.8 billion, an increase of 8% over the prior year. (multiple articles)
- [● 14 SOURCES] The IPO is expected to value Shein at $40‑50 billion, raising less than $3 billion. (Analyst estimates cited in prospectus)
- [● 15 SOURCES] Shein’s revenue grew 1.1 % to $9.05 billion in the first quarter of 2026. (Shein)
- [● 15 SOURCES] Shein’s net income was $395 million in the same quarter a year earlier. (Shein)
- [● 16 SOURCES] The United States abolished the de‑minimis duty‑free exemption for parcels under $800, raising tariffs on Chinese goods to 10‑87.5 %. (U.S. government)
- [● 15 SOURCES] Shein had 281 million active customers at the end of March 2026, up more than 16 % year‑on‑year. (Shein)