Shein swings to Q1 net loss of $99 million, gets China nod for Hong Kong IPO

Published Jul 26, 01:41 PM UTC

Online fast-fashion retailer Shein reported a net loss of $99 million in the first quarter of 2026, swinging from a $395 million profit in the same period last year, according to its draft Hong Kong listing prospectus. The loss was driven by the Trump administration's removal of the 'de minimis' duty-free exemption, which had allowed packages under $800 to enter the U.S. without tariffs. China-origin products shipped to the U.S. are now subject to tax rates of 10% to 87.5%. Revenue edged up 1.1% to $9.05 billion. The company also recorded $328 million in fair-value losses on convertible redeemable preferred shares. Shein received approval from China's securities regulator on July 10 for its Hong Kong IPO, after failed attempts in New York and London. The filing did not disclose the offer size or price. Founder Sky Yangtian Xu is listed as chairman and CEO; former executive chairman Donald Tang is no longer in management. Goldman Sachs, Morgan Stanley, and JPMorgan are joint sponsors.