Shein raises $1.74B in Hong Kong IPO, plans Everlane purchase
Shein, the fast-fashion retailer, just raised $1.74 billion in its Hong Kong IPO and is now looking to buy other brands to keep growing.
Its first big move? Confirming in its prospectus its plan to buy US sustainable label Everlane for $80 million, a step toward reaching eco-conscious, higher-income shoppers.
Shein faces Everlane backlash, slowing sales
By adding Everlane and aiming to blend new brands into its supply chain, Shein hopes to shake off its more than a fast fashion fad image and build a more diverse lineup.
Some Everlane fans aren't thrilled about the takeover, but analysts think this could help Shein tap into a premium market.
Still, it's not all smooth sailing: since the IPO, Shein's shares have been more than 20% lower and sales growth has slowed down, partly because of new US import rules.