For its planned float on the Hong Kong Stock Exchange, Shein has presented investors with a valuation in the mid-to-high $20 billions, according to the Financial Times. This is significantly lower than the $30 to $40 billion valuation it was seeking as recently as last week, according to Reuters.
The valuation reflects the analysts’ view that Shein is transitioning from a high-growth, technology-enabled fast-fashion disruptor to a mature global apparel seller under margin pressure.
Impact of trade tariffs
Shein’s profits have been hit by US and EU trade tariffs. The Chinese-founded company enjoyed rapid growth and surging sales during the pandemic and beyond, with UK revenues alone topping £2 billion and pre-tax profits reaching £38.3 million in 2024. However, following the removal of the de minimis exception (which allows small packages to enter the country without import duties) in the US in May 2025, Shein recorded bottom-line net losses of $99 million (£74 million) for the three months to the end of March against profits of $395 million (£296 million) a year earlier.
While it stated that this first quarter loss was mainly due to a $328 million (£246 million) hit from an accounting change for special investor shares, it said in its Hong Kong IPO prospectus that the removal of the US de minimis exemption had “adversely impacted” its US sales and overall revenue growth.
The EU followed the USA’s lead in July 2026 by imposing a three-euro duty on small parcels imported from outside the trading block. Although it is too early to see the impact of this on Shein’s business, the company has stated that it may have a “material adverse effect”.
UK proposes changes
Former Chancellor Rachel Reeves said the UK also intends to remove the de minimis exemption, although no date has been set. British retailers had previously urged this to be brought forward.
The Industry reports that the Hong Kong float could happen as early as next week. This is Shein’s third attempt to launch an IPO after attempts in London and New York did not proceed. Some analysts have suggested that Shein may have missed its ‘golden opportunity’ to list now that interest in ultra-fast fashion – and confidence in Shein’s ability to continue growing – appears to have waned. “The company has missed the golden time to list,” William Ma, chief investment officer at GROW Investment Group, told CNBC.
A successful Hong Kong flotation would give Shein fresh capital to invest in global expansion, but it would also expose the fast-fashion giant to unprecedented scrutiny of its growth, margins and supply chain practices. For UK retailers, the IPO could provide the clearest view yet of the economics behind one of the industry’s most disruptive competitors.
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