Shein Posts Q1 2026 Net Loss Amid U.S. Tariff Impact Ahead of Hong Kong IPO
Shein reported a $99 million net loss in the first quarter of 2026, reversing from a $395 million profit during the same period last year. The decline was attributed to the removal of the U.S. de minimis duty exemption and a one-time accounting charge related to convertible preferred shares held by early investors. Revenue from the United States dropped 14.3% to $2.04 billion, representing 22.5% of total revenue for the quarter. The company cited increased tariffs on Chinese goods shipped into the U.S., ranging between 10% and 87.5%, as a major factor affecting its sales in that market. Shein is raising prices to offset some costs but noted an operating margin compression from 3.9% to 2.9%. The company also mentioned broader challenges, including impacts from the Iran war on demand and delivery delays. Shein plans to list in Hong Kong after failed attempts in New York and London. It aims for a valuation between $40 billion and $50 billion with Goldman Sachs, Morgan Stanley, and JPMorgan Chase as joint sponsors.
Topics: ipo losses revenue decline tariffs