Shein reports 298 million Q2 orders as profit slips two‑thirds
Shein fulfilled 298 million orders between April and June, 21 million more than a year earlier, while first‑half adjusted net income fell 55.6% to $499 million. Revenue for the half edged up 1% to $20.13 billion, but the company’s market value slid to about $16.8 billion after shares fell as much as 12.1% to a record low.
Fulfilment expenses rose 18.1% to $5.59 billion, absorbing 50.4% of revenue versus 43.1% a year earlier. Fulfilment and marketing together consumed about 64 cents of each revenue dollar, up from 57 cents previously. US revenue fell 6% to $2.47 billion in the quarter, Europe revenue dropped 13.9% to $3.77 billion, and rest‑of‑world sales rose 21.6% to $4.84 billion.
“The compression was primarily driven by a sharp spike in oil prices and freight rates amid Middle East geopolitical tensions,” Sky Xu, Shein’s founder, chairman and chief executive said.
“We made a deliberate decision to absorb these costs – which we view as transitory – rather than pass them through to consumers, maintaining a consistent pricing experience and order momentum,” Sky Xu, Shein’s founder, chairman and chief executive said.
In the first quarter, US revenue dropped 14.3% and the company described a continued recovery of its US business; across the half, US revenue was down about 10%. Ahead of the EU’s removal of the customs duty exemption on July 1, Shein raised prices and cut online advertising in Europe, where revenue fell 13.9% to $3.77 billion and average monthly users fell to 128 million by June.
What we know
Shein fulfilled 298 million orders between April and June, 21 million more than the same period a year earlier.
For the first half, revenue edged up 1 per cent to $20.13 billion while adjusted net income dropped 55.6 per cent to $499 million.
Bloomberg reported that the shares fell as much as 12.1 per cent on Tuesday to a record low, cutting Shein’s market value to about US$16.8 billion from roughly $26 billion at listing.
Fulfilment expenses rose 18.1 per cent to US$5.59 billion and absorbed 50.4 per cent of revenue, up from 43.1 per cent.
US revenue fell 6 per cent in the second quarter to US$2.47 billion, which the company linked to American tariffs and the marketplace shift.