Since spring 2025, the elimination of the so-called de minimis exemption in the USA, which previously allowed smaller packages to pass through customs duty-free, has had a negative impact on the company's sales. Goods from China are now subject to new tariffs on the US market. As a result, Shein's revenue in the USA decreased during the first quarter, and the US market's share of the company's total revenue has shrunk compared to a few years ago. The company writes in its prospectus that, in response to the increased costs, it is evaluating a number of different options, including price increases in the USA.
Europe accounted for approximately one-third of Shein's revenue during the past year, and that market is now affected by the import duty of three euros for low-value packages that the EU introduced during the summer. In the prospectus, the company states that it is too early to make a full assessment, but that developments in the EU may generally align with, or exceed, the negative impact observed in the USA after the customs exemption there was removed.
Halved Valuation
Looking at the full year 2025, the company's net profit decreased while revenue growth slowed down compared to previous years. Operating margin has also been squeezed.
The company's expected valuation has halved in recent years and is estimated to land between 40 and 50 billion dollars ahead of the upcoming listing. The documentation shows that the vast majority of goods from the company's supply chain were stored in central warehouses in China before being shipped onwards. The new capital from the stock market listing is planned to be used for technology development, increased brand awareness, global expansion and initiatives within corporate social responsibility.