Fashion retailer Shein reported a net loss of $99m for the quarter ended 31 March 2026, compared with a profit of $395m in the same period a year earlier, according to financial filings issued ahead of its planned Hong Kong listing.
The company said the quarterly loss was mainly due to a $328m fair-value loss related to convertible redeemable preferred shares.
The disclosure forms part of Shein’s listing documents for Hong Kong.
The filing shows that several details of the offer, including the number of shares, pricing and parts of the timetable, have been redacted.
The China Securities Regulatory Commission cleared Shein's Hong Kong listing on 10 July, after the company's earlier attempts to go public in New York and London did not proceed.
The filing pointed to the withdrawal of the US “de minimis” exemption since May 2025 as a factor weighing on the business.
The exemption allowed shipments valued under $800 to enter the US from China without tariff exemptions, subject to applicable rules.
Its removal, the company said, has had an “adverse impact” on US sales and overall revenue growth, and has pushed up fulfilment costs as a share of revenue.
Chinese-origin goods bought from Shein or via its marketplace and shipped to the US now face tax rates of between 10% and 87.5%.
“In response to the increased duties and taxes, we are pursuing a wide range of options, including increasing our prices in the US market to offset a portion of the increased costs”, the company said in the filing.
In the first quarter, Shein’s US revenue fell 14.3% year-on-year to $2.04bn from $2.38bn.
The US accounted for 22.5% of total revenue in the three months to 31 March 2026.
Europe accounted for approximately a third of Shein’s revenue last year.
The filing said goods shipped to Europe, which had previously benefited from the EU’s €150 ($171.21) customs duty exemption, are now facing higher associated costs after the EU imposed a €3 fee on low-value e-commerce imports this month.
On the potential effect in Europe, the company said: “Although it remains too early to fully assess, it is possible that trends in the EU could be generally in line with or exceed the impact observed in the US after the removal of the US de minimis exemption.”
For the full 2025 financial year, Shein’s net income fell 38.7% to $2.06bn while revenue increased 8% to $41.84bn.
The filing said this compared with growth of 20.7% in 2024. Operating margin was 2.9% in the first quarter of 2026, down from 3.9% a year earlier.
Shein said listing proceeds would be used to strengthen technological capabilities, build brand awareness, expand its global footprint, support corporate responsibility initiatives and for general corporate purposes.
The filing named co-founder Sky Yangtian Xu as chairman and chief executive.
Pre-IPO investors include IDG, Sequoia Capital, HongShan, Tiger Global, Boyu, Brookfield and General Atlantic.
Goldman Sachs, Morgan Stanley and JPMorgan are acting as joint sponsors of the listing.
