Shein flags tariff hits after posting quarterly loss ahead of Hong Kong IPO

Shein reported a $99 million quarterly loss for Q1 2026, reversing a $395 million profit from a year earlier, as the fast-fashion retailer faces headwinds from U.S. tariff changes and EU import fees. The U.S. removal of the de minimis exemption on small packages has adversely impacted sales, with U.S. revenue dropping 14.3% to $2.04 billion. The EU also imposed a €3 fee on low-value e-commerce imports. Shein's valuation target for its Hong Kong IPO has fallen to $40-50 billion from $100 billion in 2022. The company warned that EU trends could mirror or exceed the U.S. impact. Despite slowing growth, 2025 net income fell 38.7% to $2.06 billion on 8% revenue growth to $41.85 billion.