Shein profits sink ahead of London IPO

Shein’s profits plunged by more than a third last year in a fresh blow to its highly anticipated flotation on the London Stock Exchange.

Net profit for the fast fashion giant plummeted by almost 40% to £789m ($1bn) in 2024 following a difficult final quarter and rising competition from rival Temu, The Financial Times reported. Sales are understood to have jumped 19% to £30bn ($38bn).

The figures are much lower than Shein’s initial projections of £3.8bn ($4.8bn) in net profit and £42.6bn ($45bn) in sales that it had informed investors in early 2023.

The retail giant, which filed confidential papers for a listing on the London Stock Exchange in June last year, has faced multiple setbacks to making its stock market debut and is still waiting for regulatory approval in the UK and China.

Last week, it was reported that Shein could be forced to reduce its valuation once again again to around £23.83bn ($30bn) from its previously estimated £50bn, that would have made it London’s biggest ever flotation.

The retailer is understood to have also delayed its IPO from as soon as Easter to the second half of 2025 following changes to import tariffs in the US.

The Trump administration said at the start of the month that it would close the “de minimis” duty exemption in the United States and an additional 10% of tariffs would be added on all Chinese goods, ending an import rule that had helped the retailer keep prices low.

Shein is understood to be ramping up its production base in Vietnam to mitigate the impact of rising US tariffs on its supply chain.

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