Shein Ends Quarter with $99 Million Loss Following Tariff Hikes

Shein ended the first quarter of 2026 with a loss of 99 million dollars. According to the company, the main reason for this was a decrease in sales in the United States.

Shein's sales were particularly affected by the US decision to eliminate the customs exemption for low-value parcels. Previously, parcels valued at less than 800 dollars entered the country without additional duties. Now, tariffs ranging from 10% to 87.5% apply to products shipped from China to the US.

According to the company, revenue received in the US during the first quarter decreased by 14.3% and amounted to 2.04 billion dollars. To cover increased expenses, Shein is also considering raising prices in the American market.

Similar changes are expected in Europe as well.

The European Union has imposed a 3-euro fee on low-value online orders. According to Shein's assessment, this decision could have the same or even stronger impact on the company's operations as the elimination of the US customs exemption did.

In 2025, Shein's revenue grew by 8% and reached 41.85 billion dollars, although net profit decreased by 38.7% to 2.06 billion dollars. Additionally, the company's growth rate has slowed.

Shein is preparing to go public on the Hong Kong Stock Exchange. The company received approval from China's regulator on July 10, but has not yet specified when it will begin selling shares, what their price will be, or what amount of capital it plans to raise.

Source: Investing.com