Shein faces first public earnings test as growth woes mount
Early indicators point to further weakness in Q3 of the year
As Shein prepares to reveal its first earnings as a public company, early signs suggest the Chinese fast-fashion giant is facing continued challenges. The company's stock has dropped nearly 28% since its listing, hit by slowing demand, rising costs and regulatory pressure. Shein's board will meet on Sept 28 to approve first-half results, but investors will likely focus on the third quarter, where early indications point to further weakness.
Bloomberg intelligence analysts Catherine Lim and Jason Zhu predict revenue growth will slow to 2.5% in 2026, with adjusted operating profit falling more than 19%, due to rising oil and freight costs. France's new fees on ultra-fast-fashion items and the EU abolishing its de minimis customs duty exemption also add to Shein's challenges.
With third-quarter sales set to be the key test, Shein's ability to attract and retain shoppers will be crucial.
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- Shein faces first public earnings test as growth woes mount straitstimes.com
