Shein Group's net income rose to over $400 million and revenue was almost $10 billion in the first quarter

Shein Group's net income rose to over $400 million and revenue was almost $10 billion in the first quarter

Shein Group Ltd., a fast-fashion retailer, has reported robust financial performance for the first quarter of 2025. According to confidential sources, the company's net income surged to over $400 million, while revenue nearly reached $10 billion. This significant growth was driven by increased consumer demand for Shein's products, which was bolstered by the anticipation of US tariffs on Chinese goods [1].

Shein's profit margin improved to approximately 5% during this period. Despite the challenges posed by the US government's decision to remove the de minimis rule, which exempted low-value goods from tax, Shein managed to benefit from preemptive consumer stockpiling of products [1]. However, the company's plans for an initial public offering (IPO) have been complicated by these regulatory changes and ongoing scrutiny of its supply chain and labor practices.

The company initially planned to list in the US but faced obstacles, leading to a shift in its IPO strategy. Shein ultimately chose to file a draft prospectus confidentially in Hong Kong, where it is headquartered [1]. The company's supply chain diversification efforts, including the exploration of manufacturing in Vietnam, have been impacted by recent tariff changes. Shein's attempts to mitigate the effects of these tariffs have included raising prices on some items and exploring new manufacturing bases [2].

Shein's revenue growth has slowed compared to previous years, with a 19% increase to around $38 billion in 2024, down from the 40% or more growth rates seen in previous years [1]. The company's IPO in London has been delayed due to regulatory approvals from both Chinese and British authorities. The ongoing political and regulatory challenges have put further pressure on Shein's IPO plans.

Shein's success in navigating the complexities of global trade and regulatory environments highlights its resilience and adaptability. However, the company's ability to maintain its current growth trajectory will depend on its capacity to continue innovating and adapting to changing market conditions.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-31/shein-revenue-neared-10-billion-in-first-quarter-before-tariffs
[2] https://kanebridgenewsme.com/sheins-bargain-app-formula-crumbles-under-trump/