Shein Reports First Public Earnings Amid Sales Slump
Shein Global Holdings reports its first public earnings this week as declining US sales and new European regulations drive its stock down 28 percent.
The board of Shein Global Holdings Ltd. meets on September 28 to approve first-half results, marking the company's first earnings report since its Hong Kong listing at a valuation of approximately US$26 billion. The report comes as the company faces significant headwinds, including a 40 percent plunge in app downloads during August and a decline in global web traffic.
Sales in the United States fell more than 10 percent through early September. These losses coincide with rising freight costs linked to the Iran war and increased regulatory pressure in Europe. The European Union abolished its de minimis customs duty exemptions in July, and France implemented new fees on ultra-fast-fashion items on September 1.
While competitors such as Amazon.com and Temu have posted growth since April, Shein's stock has fallen nearly 28 percent since its public debut. Investors remain focused on third-quarter indicators that suggest continued weakness for the fast-fashion giant.
