Shein's Annual Profit Plunges by Nearly 40%, FT Says

Chinese e-commerce giant Shein – hit hard recently by the Trump Administration closing a lucrative tax loophole – has seen its profit drop by more than a third, according to a new report.

The online fast-fashion retailer, which plans to list on the London Stock Exchange, has seen its net profit fall by almost $1 billion in 2024, a report by the Financial Times said on Sunday. It two people with knowledge of the matter.

However, Shein’s sales for the full year rose by 19% to $38 billion, the report said, adding that the figures were from internal projections ahead of finalised accounts.

ALSO SEE: China, Asian Markets Fall After Trump’s Latest China Curbs

The company does not publish profit guidance but the 2024 figures were far lower than the $4.8 billion in net profit and $45 billion in sales it had projected for 2024, the report added, citing a presentation seen by the newspaper.

Shein did not immediately respond to a request for comment.

Earlier this month Reuters reported that Shein was set to cut its valuation in the planned initial public offering (IPO) in London by almost a quarter to about $50 billion. And a report last week said that Shein was under pressure to cut its valuation as low as $30 billion.

The Financial Times has also reported that the London listing could be postponed to the second half of the year after U.S. President Donald Trump moved to end a tax exemption enjoyed by Shein, potentially denting profitability and pushing up its prices in the United States.