Archive · 26 Jul 2026
Shein Reports Q1 Loss Ahead of Hong Kong IPO
Shein, a popular online fashion company, recently reported a loss of $99 million for the first three months of this year.
This loss comes as the company prepares to go public in Hong Kong.
The main reasons for the loss include changes in U.S. import rules, which have made it more expensive to ship products to the U.S., and some financial adjustments related to investor shares.
Despite these challenges, Shein's overall sales still grew slightly.
The company was founded in China and is now based in Singapore.
It plans to list its shares in Hong Kong with the help of major banks like Goldman Sachs and Morgan Stanley.
Shein reported a net loss of $99 million in Q1 2025 due to the removal of the de minimis duty-free policy and fair-value losses on convertible redeemable preferred shares.
Revenue rose 1.1% to $9.05 billion compared to the same quarter a year earlier.
The company is preparing for a Hong Kong IPO, with Goldman Sachs, Morgan Stanley, and JPMorgan as joint sponsors.
The removal of the de minimis exemption has adversely impacted sales in the U.S. and increased expenses.
Shein's founder, Sky Yangtian Xu, serves as chairman and CEO, while Donald Tang is no longer listed among the company's directors or senior management.
- Who
- Shein, a Singapore-headquartered online fast-fashion retailer founded in China
- What
- Shein reported a net loss of $99 million in Q1 2025 ahead of its Hong Kong IPO
- When
- The financial details were revealed in the draft Hong Kong listing prospectus on July 26, 2025
- Where
- The company is headquartered in Singapore and is planning to list in Hong Kong
- Why
- The loss was attributed to the removal of the de minimis duty-free policy and fair-value losses on convertible redeemable preferred shares
Shein's Financial Challenges
Shein's Growth and Market Position
Impact of Duty-Free Policy Removal
Shein's Financial Challenges
The removal of the de minimis duty-free policy has adversely affected Shein's sales and growth in the U.S., leading to increased expenses.
Shein's Growth and Market Position
Despite the challenges, Shein's revenue grew by 1.1% to $9.05 billion in Q1.
Financial Performance
Shein's Financial Challenges
Shein reported a net loss of $99 million in Q1, compared to a net income of $395 million in the same quarter a year earlier.
Shein's Growth and Market Position
Shein's revenue increased, indicating its strong market position and continued consumer interest.
- Company
- Shein
- Founder and CEO
- Sky Yangtian Xu
- Q1 Net Loss
- $99 million
- Q1 Revenue
- $9.05 billion
- Listing Location
- Hong Kong
- Key Markets
- U.S., China
- Investment Banks
- Goldman Sachs, Morgan Stanley, JPMorgan