SHEIN REPORTS QUARTERLY LOSS AFTER US TARIFF EXEMPTION ENDS

Shein reported a net loss of 99 million US dollars (£74 million) in the first quarter of 2026, compared with a profit of 395 million US dollars (£296 million) a year earlier. The fast-fashion group attributed the loss partly to the removal of the US de minimis tariff exemption on small packages, which took effect in May 2025. Sales rose 1.1 per cent to 9.05 billion US dollars (£6.78 billion). The company also reported a paper loss of 328 million dollars (£246 million) from an accounting change for special investor shares ahead of its planned Hong Kong listing.

The de minimis exemption had allowed goods valued at 800 US dollars or less to enter the United States without tariffs. President Donald Trump's executive order ended the global exemption, broadening an earlier action that specifically targeted cheap products from China and Hong Kong. Shein said the removal "had an adverse impact on our sales in the US and the overall growth of our net revenues" but noted "signs of normalisation in consumer purchasing behaviour and sales trends in the US" since. The European Union also imposed a three-euro (£2.56) duty on small parcels from outside the trading bloc, which Shein warned could have a material adverse effect on its business given that Europe accounted for roughly a third of its sales last year.

Shein said it was pursuing a range of options to offset increased costs, including raising prices in the US and European markets. The company also reported that the Iran war had hit demand, increased costs and caused delivery delays in some markets. According to the filing, Shein had 281 million active customers in the year to March 2026, a rise of more than 16 per cent year-on-year. The China Securities Regulatory Commission approved Shein's Hong Kong listing on 10 July, with the share sale expected in coming months.