A potential setback for the online fast-fast retailer as it prepares for a planned listing on the London Stock Exchange, Shein’s net profit declined by 40 per cent to $1 billion in 2024, as per a report by the Financial Times.
Shein's sales increased by 19 per cent to $38 billion during the year. This is notably lower than the projections of $4.8 billion in net profit and $45 billion in sales made by the company earlier.
Recent reports indicate, Shein plans to lower its valuation for the London IPO by almost 25 per cent, aiming for approximately $50 billion. Further reports suggest, the company might be under pressure to accept an even lower valuation of around $30 billion.
The timeline for the London listing may also be affected. Reports have noted that a change in US policy regarding a tax exemption enjoyed by Shein could impact the company's profitability and pricing within the United States. This potential development might lead to a postponement of the London listing to the latter half of the year.
