Shein sales rise 20% in 2024 but profits hit by higher costs

Shein’s global sales soared by 20% to $37bn (£27.7bn) in 2024, though profits were hit by rising costs over the year, whilst the fast-fashion group also warned on the effects of changing US tax laws.  

According to the Guardian, accounts from the group’s Singapore-based parent company show that pre-tax profits fell by 13% to $1.3bn (£968m), down from $1.5bn (£1.1bn) in 2023, as it navigated higher selling and marketing costs over the year. 

The increase in costs had come even before the impact of recent changes to US trade rules, however.

The company is said to have been hit by higher US tariffs and the end of the de minimis tax exemption introduced earlier this year under Donald Trump’s administration.

The de minimis exemption had previously allowed goods worth less than $800 (£596) to be imported and sent directly to shoppers without certain checks and duty.

According to the Guardian, Shein warned that these changes to US tariff policies and their “frequent evolution” had “increased the level of uncertainties in the global economy”.

It said: “The ongoing evolution of trade policies continues to introduce complexities for businesses that may affect the group’s and the company’s future financial condition and operations.”

Earlier this year, it was also reported that Shein was exploring ways to restructure its US business in an attempt to get around the US tariffs on China.

It comes as the group has reportedly pivoted towards a listing in Hong Kong after a proposed IPO in London hit a roadblock from Chinese regulators.

The move comes as the fast-fashion group had not yet received approval for its London IPO from Chinese regulators, including the China Securities Regulatory Commission (CSRC).

Shein had been preparing for its London float for a number of months after originally planning to float on the New York Stock Exchange.

However, it faced regulatory hurdles between China and the US, as well as pushback from American regulators.