Shein’s Hong Kong IPO filing reveals $99M quarterly loss

Shein swung to a $99 million net loss in the first quarter of 2026, a sharp reversal from the $395 million profit it reported a year earlier, according to a draft prospectus published Sunday for its planned Hong Kong initial public offering. The filing marks the first time the fast-fashion giant has opened its books to public scrutiny, laying bare the toll of the Trump administration's trade policies on its business.ndtvprofit+1

Tariffs Bite Into Profitability

The Singapore-headquartered retailer attributed the downturn largely to the removal of the U.S. "de minimis" duty-free exemption in May 2025, which had allowed shipments valued below $800 to enter the country without import duties. China-origin products sold by Shein and shipped to U.S. customers are now subject to tariffs ranging from 10% to 87.5%, according to the prospectus.investing+1

Despite the loss, Shein's revenue proved resilient, rising 1.1% year-on-year to $9.05 billion in the January-March quarter. The company noted that a $328 million fair-value loss on convertible redeemable preferred shares also weighed on the bottom line — an accounting adjustment common ahead of public listings.ndtvprofit+1

For the full year 2025, the prospectus showed revenue of $41.8 billion, up from $38.7 billion in 2024, while net income fell 38.7% to $2.06 billion from $3.37 billion the prior year.investing

Path to Market

The filing follows Shein's approval from the China Securities Regulatory Commission on July 10 and clearance from the Hong Kong Stock Exchange listing committee on July 17. The company plans to issue up to 341.6 million shares and is targeting a valuation of $40 billion to $50 billion — far below its $100 billion peak in 2022.wwd+3

Goldman Sachs The Goldman Sachs Group, Inc. ↘ 1.38%, Morgan Stanley ↘ 0.89%, and JPMorgan ↘ 0.73% are acting as joint sponsors. The prospectus does not disclose offer size, pricing, or a firm listing date, but sources have told Reuters that investor roadshows and bookbuilding could begin in late August, with a listing possible in September or October.money.usnews+2

Years in the Making

Shein's road to public markets has been long and winding. The company previously sought to list in New York before pivoting to London, where it received regulatory approval from the Financial Conduct Authority but failed to secure clearance from Chinese authorities. The Hong Kong listing represents what may be the company's final viable path to a public debut — one now shadowed by questions about whether U.S. tariff headwinds will continue to erode its once-formidable margins.cmcmarkets+1