SHEIN has reported a $99m (£74m) first-quarter loss as US tariff changes and a substantial accounting charge weighed on its performance.
The online fashion retailer recorded the loss during the first three months of 2026, compared with a net profit of $395m during the equivalent period last year.
Revenue increased by just 1.1 per cent to $9.05bn, while operating profit fell by 26 per cent to $258m as marketing and fulfilment costs increased.
The net loss was principally caused by a $328m non-cash change in the fair value of the company’s redeemable convertible preference shares.
SHEIN was also affected by the US government’s removal of the “de minimis” exemption, which had allowed packages worth less than $800 to enter the country without import duty.
US revenue fell by 14 per cent to $2bn during the quarter. The market accounted for 22.5 per cent of group revenue, down from 26.6 per cent a year earlier.
The retailer said the removal of the exemption had adversely affected US sales and overall growth while increasing its costs.
The figures were disclosed in SHEIN Global Holdings’ draft prospectus for its proposed flotation on the Hong Kong Stock Exchange.
For the full 2025 financial year, revenue increased by 8 per cent to $41.8bn, from $38.7bn in 2024. Net profit, however, fell from $3.37bn to $2.06bn.
SHEIN is reportedly seeking a valuation of between $40bn and $50bn through the listing, following unsuccessful attempts to float in New York and London.
Its prospectus did not disclose the size or price of the proposed share sale, the amount it expects to raise or a confirmed listing date. The flotation is currently expected to take place during late August or early September.
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