Fast-fashion giant Shein’s profits plummeted by more than a third last year, according to reports, ahead of its highly-anticipated London listing.
The Singapore-based fashion giant’s net profit declined by almost 40% to $1bn (£790m) in 2024, falling short of its earlier projection of $4.8bn (£3.8bn), according to The Financial Times.
Sales at Shein are reported to have increased by 19% to hit $38bn (£30bn) despite still coming in lower than Shein’s sales projection of $45bn (£35.6bn).
The newspaper reported that Shein “struggled” in the final quarter as a result of increased competition from Chinese rival retailer Temu.
Shein did not provide a comment.
The fashion giant’s listing in London still remains uncertain due to ongoing queries surrounding its supply chain and legal risks, including challenges proposed by advocacy groups for China’s Uyghur population.
It was also reported earlier this month that Shein was considering further delaying its IPO in London following the changes to US tariff rules announced by US president Donald Trump.
This comes after Trump announced that he would axe the “de minimis” rule that allows goods under $800 (£645) to be imported without import duty as well as impose an additional 10% tariff on Chinse-made goods, impacting a “loophole” used by the likes of Shein and Temu to sell goods at a very low price.
Shein is also thought to be building up its production capabilities in Vietnam to mitigate the impact of tariffs.
Speaking on the stage at LIVE 2025: Retail Week x The Grocer this month, Shein head of strategic and corporate affairs in North Amreica, the UK and Europe Peter Pernot-Day argued that there are a number of “misperceptions” around the business and speculated “tax loopholes”.
He said: “I think there is a misperception that our pricing advantage and our speed advantage are derived from us dodging tax loopholes or avoiding duties or things of that nature, and I’m here to tell you that we do not rely on customs policy to be successful.”
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