A shopper carries a bag with promotional merchandise while visiting fashion retailer Shein’s Christmas bus tour, in Manchester, Britain, December 13, 2024.
Temilade Adelaja | Reuters
Online fast-fashion retailer Shein’s profit dropped by more than a third last year, adding to its challenges ahead of a planned listing on the London Stock Exchange, the Financial Times reported on Sunday.
Net profit was down almost 40% at $1 billion in 2024, the report said, citing two people with knowledge of the matter.
Shein’s sales for the full year rose by 19% to $38 billion, the report said, adding that the figures were from internal projections ahead of finalized accounts.
The company does not publish profit guidance but the 2024 figures were far lower than the $4.8 billion in net profit and $45 billion in sales it had projected for 2024, the report added, citing a presentation seen by the newspaper.
Shein did not immediately respond to a request for comment.
Reuters this month reported that Shein was set to cut its valuation in the planned initial public offering (IPO) in London by almost a quarter to about $50 billion. Bloomberg reported last week that Shein was under pressure to cut its valuation as low as $30 billion
The Financial Times has also reported that the London listing could be postponed to the second half of the year after U.S. President Donald Trump moved to end a tax exemption enjoyed by Shein, potentially denting profitability and pushing up its prices in the United States.