Shein swung to $99M loss in Q1. Reason? Donald Trump
What's the story
Fast-fashion giant Shein, which is headquartered in Singapore but was founded in China, has reported a loss of $99 million in Q1 2026. This is a sharp contrast to the net income of $395 million that it had recorded during the same period last year. The company's sales have been affected after US President Donald Trump removed an import duty exemption on small packages.
Market strategy
Shein prepares for stock market debut in Hong Kong
The financial disclosure comes as Shein prepares for its stock market debut in Hong Kong.
However, the filing didn't provide any details about the size, timetable, or pricing of the planned initial public offering (IPO).
Despite the recent losses, Shein's customer base has continued to grow.
As of March 2026, it had 281 million active customers, a more than 16% increase from a year earlier, who placed over one billion orders in that period.
Business adjustments
Shein may increase prices in US
In light of the increased duties and taxes, Shein is pursuing a range of options.
The company said it is "pursuing a wide range of options, including increasing prices in the US market to offset a portion of the increased costs."
Further complicating matters, Shein also cited the Iran war as a factor that has affected demand, raised costs, and delayed deliveries in some markets.