Online fast-fashion retailer Shein posted a $99 million loss in its most recent quarter, a sharp reversal driven by slowing American sales and a significant one-time accounting charge — details that came to light for the first time through documents filed with the Hong Kong stock exchange on Sunday as part of the company’s long-anticipated initial public offering (IPO).
The draft filing did not include details on the IPO’s size or share price range.
Here is a breakdown of the key financial figures disclosed in the prospectus:
Shein’s annual revenue climbed steadily from $32.1 billion in 2023 to $38.8 billion in 2024, then to $41.9 billion in 2025 — a compound annual growth rate of 14.2% over those two years, fueled by a broader product lineup and a growing customer base worldwide.
However, the company’s reliance on the American market has been shrinking. The U.S. share of total revenue dropped from 29.4% in 2023 to 24.1%, or $10.1 billion, in 2025, following the U.S. government’s decision to end duty-free treatment for small imported packages.
Europe stepped in to fill that gap, overtaking the U.S. as Shein’s top market in 2024. European revenue jumped from $10.2 billion in 2023 to $14.8 billion in 2025, accounting for 35.4% of total net revenues.
Markets outside the U.S. and Europe — grouped as “Rest of the World” in the filing — also expanded, rising from $12.4 billion, or 38.8% of revenue in 2023, to $16.9 billion, or 40.5% of revenue, by 2025.
In the first quarter of 2026, total revenue edged up just 1.1% to $9 billion compared to the same period a year earlier. U.S. revenue specifically fell 14% to $2 billion during that quarter, with its share of overall sales dropping from 26.6% to 22.5%.
Operating profit in the first quarter declined 26% to $258 million year-over-year, as higher marketing and fulfillment expenses weighed on results at a time when sales growth had stalled. The operating margin narrowed to 2.9% from 3.9% in the same quarter the prior year. Over recent years, the company’s operating margin ranged from roughly 2.5% in 2024 to about 4.3% in 2023.
The $99 million net loss in the first quarter of 2026 was largely tied to a $328 million non-cash accounting charge related to a fair-value adjustment on convertible redeemable preferred shares — a type of investor stock that converts to ordinary shares when a company goes public.
On the question of valuation, Shein was worth $98.2 billion during a 2022 fundraising round. That figure fell to $64 billion two years later. Reuters reported this month, citing a source, that the company is now targeting a valuation of between $40 billion and $50 billion for its IPO.
Product sales continued to dominate Shein’s revenue, making up nearly 90%, or $37.1 billion, in 2025. Service revenues, meanwhile, grew from $868 million to $4.7 billion over the same period. Apparel remained the company’s core category, though its share of revenue dipped from 68.8% in 2023 to 63.8% in 2025, while other product categories grew faster, rising from $10 billion to $15.1 billion.
