The major fashion company Shein reported a loss of $99 million in the first quarter of 2026. The company's sales growth has slowed due to the elimination of customs exemptions for small shipments to the U.S. A year ago, during the same period, Shein had a net profit of $395 million.
The company stated that it may raise product prices to offset some of the costs due to increased tariffs and taxes in the U.S. Shein also noted that the consequences of the war in Iran have impacted demand, increased costs, and caused delivery delays in some countries.
Despite the losses, the company's customer base continues to grow. By the end of March 2026, Shein had 281 million active customers who placed over 1 billion orders. The company is preparing for a stock offering on the Hong Kong stock exchange. Previously, Shein attempted to list on the New York and London exchanges, but those plans were not realized.
