Fast-Fashion: Weltlage und Konsumsorgen drücken bei Shein aufs Geschäft

An unstable global situation and challenging consumer conditions are putting pressure on the business of online fashion platform Shein, the company reported on the Hong Kong stock market. The first six months of the year were marked by "geopolitical complexity and shifting trade policy," said Shein. Increased inflation faced by consumers also played a role.

These issues were reflected in the company's numbers. In its first-half report, Shein reported a decline in operating income of about 53 percent year-over-year. The metric provides insight into a company's success. Founders Xu Yangtian, also known as Chris Xu, told investors that despite the global situation, the number of orders and revenue had grown.

However, the shares of the ultra-fast fashion retailer fell sharply on Tuesday on the Hong Kong stock exchange, temporarily hitting around 12 percent. This marked the lowest point for shares of the China-based company, now based in Singapore, since its debut on the exchange on September 1st. The surge in logistics costs due to the situation in the Middle East and new customs regulations in the US and Europe were already a problem at the time of the IPO.

New rules in the EU, which will take effect on November 1st, will impose a new processing fee on imports from third countries, aiming to curb the flood of cheap items. These regulations are likely to affect Shein and other online retailers such as Temu or AliExpress. Shein expects continuing challenges from tariffs and fluctuating shipping costs for the second half of the year, according to its own statement.

The company anticipates more orders then, especially during the Christmas season or promotions like "Black Friday."