Shein posted a $99 million net loss in the first quarter of 2026, swinging from a $395 million profit a year earlier, as the removal of a U.S. duty exemption hurt its largest market and a one-time accounting charge added to the damage. U.S. revenue fell 14.3% to $2.04 billion, and the U.S. share of quarterly revenue dropped to 22.5% from 29.4% of annual revenue in 2023. A $328 million fair-value charge tied to convertible redeemable preferred shares also weighed on results, while the operating margin compressed to 2.9% from 3.9%. The company is raising U.S. prices to offset some costs and warned that a new European Union levy on low-value shipments could have an impact in line with or exceeding the U.S. effect. Shein, which received Chinese regulatory approval for a Hong Kong listing on July 10, is targeting a valuation of $40 billion to $50 billion, with Goldman Sachs, Morgan Stanley, and JPMorgan Chase as joint sponsors.
Goldman Sachs Group Inc
Morgan Stanley
JPMorgan Chase & CoShein swung to a $99M Q1 loss due to removal of U.S. duty exemption and a fair-value charge, with U.S. revenue falling 14.3%.