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Shein’s profits reportedly dropped by 40% to $1bn (£791m) in 2024 as the online retailer suffered a difficult final quarter and battled competition from rival Temu, According to the Financial Times
According to two people who spoke to the paper, sales for the full year increased by 19% to $38bn (£30bn).
Shein does not publish profit guidance but 2024 figures were far lower than the $4.8bn (£3.7bn) in net profit and $45bn (£35bn) in sales the company had projected for the year.
Shein’s declining profits come as it battles to secure regulatory approval for a London listing while navigating geopolitical shifts that have impacted its valuation.
During its latest funding round in 2023, Shein was valued at $66bn (£52bn). However, some investors and stakeholders are urging the company to lower its valuation to around $30bn (£23bn), according to two sources cited by the FT. This adjustment could facilitate an initial public offering in the first half of this year.
Previously, the retailer told investors that a listing could happen as soon as April but an IPO could now be pushed into the second half of this year following US President Donald Trump’s decision to tighten a tariff exemption used by Shein when it sells to American customers.
According to the FT, a delay to the IPO into the second half of the year would force the company to refile fresh documents with UK regulators.
Shein has been contacted for comment.
