Shein says operating profit fell 50% in H1 2026
The retailer says the external environment will remain uncertain in H2 2026, with tariff headwinds and logistics cost volatility likely to persist.
Fast-fashion retailer Shein announced a sharp decline in its operating profit for the first half of 2026, cutting by 50.4% compared to the same period in 2025. The Chinese-founded company's net income attributable to shareholders rose to US$2.3 billion in H1 2026, up from US$1.1 billion in the prior year's comparable period. This marks Shein's first earnings report since its IPO earlier this month, which valued the company at approximately US$26.3 billion - significantly lower than the nearly US$100 billion estimated during its private fundraising rounds in 2022.
Despite reporting a 1% year-over-year increase in net revenue to US$20.1 billion, operating income fell drastically by 52.9%. Shein's chairman, Sky Xu, acknowledged the uncertain external environment for the second half of 2026, attributing challenges such as tariff headwinds and volatility in logistics costs. However, he expressed cautious optimism for the remainder of the year.
Following a tepid IPO in Hong Kong, which raised US$1.7 billion, Shein's stock price has plummeted more than 27% since the initial public offering.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Shein says operating profit fell 50% in H1 2026 freemalaysiatoday.com
