19 Hrs
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الاقتصادية
Trump tariffs impact Shein's quarterly loss
Chinese e-commerce platform Shein is experiencing a quarterly loss of $99 million, due to a slowdown in sales following the elimination of customs exemptions on small parcels in the United States, and the impact of new tariffs imposed by the European Union on shipments from outside the union. This loss comes ahead of its highly anticipated IPO on the Hong Kong Stock Exchange, amid increasing pressures from declining profits, regulatory challenges, and slowing growth—especially with significant losses related to stock valuation and the new tariffs that raise costs, as well as a reduction in the US market's share of revenue. The company is targeting a valuation below $50 billion in the offering, significantly lower than the $100 billion valuation it achieved in 2022. It faces downward pressure due to declining performance in its largest markets, which is expected to impact its ongoing expansion and global plans.
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