Chinese fashion retailer Shein is pursuing acquisitions across several price segments as it seeks to increase sales growth and broaden its business beyond its main fast-fashion labels.

The company confirmed in its prospectus that it will acquire US brand Everlane for $80m, with the label set to be integrated into its supply chain, logistics operations and existing customer base.

A source familiar with the matter told Reuters that the deal is being treated as a “dry run” for Shein's wider approach to acquisitions.

Shein said growing its “Xcelerator” scheme, which provides partner brands with access to its manufacturing, warehousing and logistics infrastructure, as well as its global sales platform, continues to be a central priority.

“We see significant potential to build on the track record we have established with successful brands such as Missguided,” a company spokesperson told Reuters, pointing to Shein's 2023 acquisition of the UK fast-fashion chain.

According to its prospectus, Shein has $15bn in cash reserves and raised a further $1.74bn through its recent IPO, giving it scope for continued dealmaking.

In a letter to staff seen by Reuters, Everlane chief executive Alfred Chang said the company would continue to run independently, retaining its current sustainability standards, leadership team and brand identity.

Shein’s inventory system reportedly monitors demand in real time and signals factories to increase or reduce production accordingly.

The $80m transaction, agreed in May, is currently being reviewed by the Committee on Foreign Investment in the US (CFIUS), which examines foreign deals for national security implications.

In its latest financial results, Shein posted a net loss of $99m for the quarter ended 31 March 2026, against a profit of $395m in the equivalent period the year before.

The company attributed the quarterly loss largely to a $328m fair-value loss tied to convertible redeemable preferred shares.