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Shein’s earnings fell for more than a third of last year, adding the challenges of fast fashion groups ahead of a long -planned flotation that would be one of the largest on the London stock market in this decade.
The net profit of the Singapore’s headquarters decreased by almost 40 percent, to $ 1 billion in 2024, because she suffered a difficult last quarter and fought against the competition of rivals a topic, he said two people with knowledge of the financial time.
The sale of the whole year increased by 19 percent, to $ 38 billion, according to people, one of which added that the numbers from internal projections were ahead of finalized accounts.
As a private company, Shein does not publish the guidelines for profit, but the 2024 figures were far lower than $ 4.8 billion net profit and $ 45 billion sales that the company projected for 2024. saw ft.
Shein did not answer the comment request.
The lower profit points out Shein’s challenges as she tries to win a regulatory approval to include London and move on to the geopolitical changes that have put pressure on his evaluation.
Shein was estimated at $ 66 billion during the last round of funding 2023, but some investors and other stakeholders put pressure on the group to reduce their estimate to about $ 30 billion, to two people familiar with the situation, a move that could help complete to complete the initial public offer in the first half of this year.
Shein, who supplies cheap clothing made in Chinese factories directly to customers around the world, previously told investors that the inclusion could happen as early as April, according to people who find out discussions.
But IPO could now be pushed to the other half of this year after the decision of US President Donald Trump to tighten the exemption from the tariff that Shein used when selling US customers, I was introduced to two people with this procedure.
Trump this month finished The rule of de minimis that allows the import of packages to be worth less than $ 800 in the US without performing duties. He also hit Chinese goods with an additional 10 percent tariffs.
The implementation of the change of de minus is on hold but Analysts expect This increases the prices for the goods sold by Shein and the topic.
The postponement of the second half of the year would force the company to be packed with fresh documents with regulators in the UK.
Last year, Shein submitted confidential and paperwork for British regulators before introducing new rules on the list in the UK. However, the transitional period to complete the IPO processes that began before the initiation of new rules should be completed in July.
The refraction would be mostly a procedural step, said three higher corporate lawyers in the UK, but the appearance that the company would miss the window due to relying on the original application points out that his efforts on the list have withdrawn.
Shein first launched plans for the public in New York at the end of 2023, but turned to the UK after the US Securities and Exchange Commission fueled it. His list became lowered due to uncertainty whether he would get approval from a regulator in London and Beijing.
The fall in profit in Shein comes as a competition of a group of a topic, which repeated its model of delivery of cheap goods Chinese products to customers abroad. The topic won some of Shein’s suppliers in China, while the competition also encouraged Shein’s Air cargo costs and Marketing consumption.
At the end of 2023. Shein responded to the theme threat briefly diversifying beyond fashion, for which the information had previously reported that they had impaired Shein’s profitability. Shein has since been diverted to his fundamental job.
Shein tillage Money in lobbying efforts in Western capital from Washington to London, including the employment of Trump’s loyalist Kasha Patel to be an advisor for his home company Elite Depot. Patel stepped down as a counselor on the eve of his recent confirmation as a director of the FBI, but kept shares in the company, worth between $ 1 million and $ 5 million.
Additional reporting Ivan Levingston