Shein's Profitable Public Debut
Shein returns to profitability with strong second-quarter sales despite falling European demand.
Anonymous
Shein reported its first results as a public company, returning to profit in the second quarter with $2.40 billion in net income and $11.08 billion in sales, after a $99 million loss in the previous quarter. The company said higher order volumes helped drive a sequential revenue increase, but first-half net revenue grew just 1% amid slowing demand and rising costs. European sales fell nearly 14%, as higher prices and reduced advertising weighed on volumes ahead of new EU fees on low-value e-commerce parcels; Europe accounts for about a third of Shein’s revenue. Shein warned of an uncertain second half, with the Iran conflict also affecting its Middle East operations, while its shares had fallen roughly 27% to 28% from their Hong Kong listing price.
Key Points
1
Shein’s second-quarter net revenue rose by more than 20% sequentially, which the company attributed to an increase in total orders fulfilled.
2
Shein reported European second-quarter sales of $3.77 billion, down nearly 14% year over year.
3
Shein shares closed 0.5% higher at HK$35.28 on the day it reported results, despite being well below the HK$48.56 offer price.
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