Shein swings to $99m loss as Trump tariffs hit sales

Shein swung to a quarterly loss in the first three months of the year, losing $99m (£74.1m), compared with a net income of $395m a year earlier. This occurred after US President Donald Trump removed an import duty exemption on small packages, which Shein stated in a filing led to increased duties and taxes. The company said, "In response to the increased duties and taxes, we are pursuing a wide range of options, including increasing our prices in the US market to offset a portion of the increased costs."

The announcement is part of the firm's preparations for its stock market debut in Hong Kong, for which the China Securities Regulatory Commission (CSRC) gave approval on 10 July. The war in Iran also hit demand, increased costs, and caused delivery delays in some markets. The first-quarter figures partly reflected a paper loss of $328m due to an accounting change for special investor shares. In the year to the end of March 2026, Shein had 281 million active customers, a rise of more than 16% on a year earlier, who placed a total of more than one billion orders. The Hong Kong share listing is expected to take place in the coming months.