Shein Reports $99 Million Loss Ahead of Hong Kong IPO

Fashion retailer Shein reported a net loss of $99 million for the quarter ending March 31, 2026, a sharp reversal from the $395 million profit recorded during the same period the previous year. The company noted that a $328 million fair-value charge on convertible redeemable preferred shares primarily drove the loss.

The company attributed declining US revenue and sales growth to the May 2025 removal of the de minimis exemption, which ended duty-free entry for shipments valued under $800. Consequently, US revenue fell 14.3% year-on-year to $2.04 billion. Shein indicated that new European Union fees on low-value imports could result in similar or more severe impacts in the European market.

These financial disclosures were released within listing documents for a planned initial public offering in Hong Kong. The China Securities Regulatory Commission cleared the listing on July 10, after the company's previous attempts to list in New York and London failed.