<\/p>\n
\n\tSlowing sales growth and a sharp profit decline are exposing strains in Shein\u2019s ultra-fast-fashion model as regulatory pressure mounts, according to its first earnings report as a public company.<\/p>\n
\n\tIn the first half of 2026, Shein generated $20.1 billion in net revenue, up 1 percent year-over-year. Operating profit fell 52.9 percent to $493 million, while adjusted net profit declined 55.6 percent to $499 million.<\/p>\n
\n\tDuring the first six month ended June 30, Shein\u2019s total order volume increased 6.4 percent year-over-year to 549 million orders. For the 12 months ended June 30, Shein had 291 million active customers, up from 254 million a year earlier.<\/p>\n
\n\tImproving profitability and addressing compliance issues amid rising policy risks in international markets and geopolitical uncertainty are emerging as key challenges for Shein.<\/p>\n
\n\tThe company continues to contend with changes in global trade and shipping policies, including the additional 3-euro European fee that took effect July 1 and France\u2019s ultra-fast-fashion levy that took effect Sept. 1, both of which are expected to put further pressure on its second-half financial performance.<\/p>\n
\n\tBy geographic region, Shein\u2019s net revenue in the U.S. fell 6 percent to $2.47 billion in the second quarter, while Europe dropped 13 percent to $3.77 billion in the same period.<\/p>\n
\n\tSKy Xu, the brand\u2019s founder and chairman, detailed the company\u2019s plans for the next one to two years \u2014 with a focus on pricing, quality and compliance, as well as consumer engagement.<\/p>\n
\n\t\u201cAs the product mix shifts toward brands at higher price points, the platform\u2019s overall average selling price will rise accordingly,\u201d Xu wrote.<\/p>\n
\n\t\u201cOur competitive advantage stems from the efficiency gains of high inventory turnover, rather than cost compression at the individual product level,\u201d Xu continued.<\/p>\n
\n\tShares fell 9.2 percent to a record low on Tuesday morning, leaving the company with a $17.3 billion valuation, down from around $26 billion when it went public on Sept. 1.<\/p>\n
#Shein #Faces #Tariff #Squeeze #Firsthalf #Profit #Falls<\/p>\n","protected":false},"excerpt":{"rendered":"
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