Online retailer Shein reported a $99 million net loss for the first quarter of 2026, according to pre-IPO financial filings released Sunday. This compares to a net income of $395 million during the same period the previous year. The company attributed the loss to a $328 million fair-value charge on convertible redeemable preferred shares and a decrease in U.S. revenue following the removal of a duty-free import exemption known as the "de minimis" rule.
The filing shows that Shein's U.S. revenue fell 14.3% to $2.04 billion in the first quarter. Since May 2025, the U.S. has applied tax rates between 10% and 87.5% on the company’s Chinese-origin products, which were previously exempt if valued under $800. Additionally, the European Union implemented a €3 fee on low-value e-commerce imports this month. Shein stated in the prospectus that it is considering price increases in the U.S. to offset these additional costs.
For the full year of 2025, Shein reported that net income fell 38.7% to $2.06 billion, while total revenue grew 8% to $41.85 billion. The company received approval from the China Securities Regulatory Commission on July 10 to proceed with a Hong Kong listing. While the filing did not specify the IPO price or date, sources told Reuters the company is seeking a valuation between $40 billion and $50 billion, down from a reported $100 billion valuation in 2022.
The prospectus identified founder Sky Yangtian Xu as chairman and chief executive, while former executive chairman Donald Tang was not listed among senior management. The company stated it intends to use IPO proceeds to improve technology, expand its global presence, and fund general corporate purposes. The listing is being sponsored by Goldman Sachs, Morgan Stanley, and JPMorgan.