Online fast-fashion company Shein disclosed detailed financial results and valuation information in a draft prospectus filed with the Hong Kong stock exchange, marking the first time many of the figures have been publicly revealed as the company prepares an initial public offering (IPO).
The filing shows the company posted a $99 million net loss for the first quarter of 2026. The document attributes the swing into loss principally to a $328 million non-cash fair-value adjustment related to convertible redeemable preferred shares and to slower sales following the termination of a U.S. import duty exemption on small packages.
Revenue growth and composition
Shein recorded annual revenue of $32.1 billion in 2023, which rose to $38.8 billion in 2024 and then to $41.9 billion in 2025. The prospectus reports this represents a compound annual growth rate of 14.2% across the two-year span, driven by an expanding product assortment and a growing customer base.
Product sales remained the dominant source of topline performance in 2025, accounting for nearly 90% of revenue at $37.1 billion. Service revenues also increased notably, climbing from $868 million to $4.7 billion over the same period.
The company continues to be heavily weighted toward apparel, although the share of revenue from clothing declined from 68.8% in 2023 to 63.8% in 2025 as other goods expanded their contribution from $10.0 billion to $15.1 billion.
Geographic shifts in sales
The prospectus shows a shift in Shein’s geographic revenue mix away from the United States and toward other regions. The U.S. share of sales fell from 29.4% in 2023 to 24.1% in 2025, equivalent to $10.1 billion in 2025. The filing links slower U.S. growth in part to the policy change that removed the exemption on small-package import duties.
Europe grew to surpass the United States as Shein’s largest market in 2024. European revenue rose from $10.2 billion in 2023 to $14.8 billion in 2025, representing 35.4% of total net revenues. The category labeled "Rest of the World" also rose, from $12.4 billion in 2023 (38.8% of revenue) to $16.9 billion in 2025 (40.5% of revenue).
Recent quarterly performance and margins
In the first quarter referenced in the filing, total revenue increased by a modest 1.1% year on year to $9.0 billion. Within that quarter, U.S. revenue declined 14% to $2.0 billion, reducing its contribution to total revenue to 22.5% from 26.6% a year earlier.
Operating profit for the first quarter fell 26% to $258 million as marketing and fulfilment costs rose while sales largely stagnated. The operating margin narrowed to 2.9% from 3.9% in the year-ago period. The prospectus notes that over recent years the company’s operating profit margin has ranged from 2.5% in 2024 to about 4.3% in 2023.
Valuation history and IPO target
The filing records prior valuations from Shein’s fundraising history: a $98.2 billion valuation during a 2022 fundraising round and a subsequent decline to $64 billion two years later. The prospectus indicates the company was seeking a valuation in the range of $40 billion to $50 billion in connection with its IPO process.
Implications highlighted in the filing
Overall, the draft prospectus presents a company that has continued to expand revenue but is showing signs of margin pressure and regional headwinds tied to trade policy changes. The accounting impact of convertible redeemable preferred shares contributed a sizable non-cash charge in the quarter, turning operating results negative for the period disclosed.
The prospectus did not include details on the size of the IPO or a price range for shares. Beyond the figures and trends presented, the filing leaves the timing and final valuation outcome of the offering unspecified.