SHEIN handled 549 million orders in the first half of 2026, up 6.4 per cent, but operating income fell 52.9 per cent to US$493 million as fulfilment costs rose.
Net revenues increased 1.0 per cent to US$20.1 billion in the online retailer’s first interim results since its Hong Kong listing. Adjusted net income fell 55.6 per cent to US$499 million.
Reported net income more than doubled to US$2.3 billion. That figure includes a US$1.86 billion non-cash gain from revaluing convertible preferred shares, so it does not reflect an improvement in underlying trading.
In the second quarter, fulfilment expenses rose 18.1 per cent to US$5.59 billion, equivalent to 50.4 per cent of revenue compared with 43.1 per cent a year earlier. SHEIN attributed the increase to higher order volumes and elevated oil and freight costs.
Second-quarter European revenue fell 13.9 per cent. The company said this reflected both a greater share of marketplace transactions, for which it records service fees rather than the full product value, and lower volumes after price increases and reduced advertising ahead of EU customs changes.
SHEIN said it is moving stock closer to European customers and adding warehouse automation, although these changes will add costs in the near term.
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