Online fashion giant Shein, which is pondering a London listing, has reported record turnover and earnings at its UK arm.
Shein posted sales growth of 32% in the year to the end of December, taking the total above £2bn for the first time, Companies House filings reported by the Financial Times revealed. Profits increased almost 57% to £38.2m.
UK employee numbers rose threefold to 91 – mainly in marketing – over the year when Shein opened two new offices and a pop-up shop in Liverpool.
The rise of Shein, which specialises in low-price products and has proved popular with young customers, has hit more established retailer over the last few years.
The retailer has also attracted controversy over perceived links to the Chinese authorities and concerns about the ethics of its supply chain – concerns which Shein has tried to assuage.
Shein has been considering an IPO for some time. Initially, a US listing was thought most likely, but the company faced hostility from prominent members of the US administration, including influential senator Marco Rubio, who is now President Trump’s secretary of state.
While Shein filed for a listing in Hong Kong, it is thought that this was undertaken to put pressure on UK regulators to green-light a London float. Shein sought permission to list in London last year, but British and Chinese regulators were unable to agree on language relating to risk disclosure.
No comments yet