Shein stock falls 12.1% after 1st public earnings to $16.8B
Shein just had a tough day on the market: its stock dropped 12.1%, hitting its lowest point since going public on Sept. 1.
This slide followed the release of Shein's first-ever earnings report as a public company, showing operating income down by more than half for the first half of 2026.
The result? Nearly $9 billion wiped off its value, bringing it down to about $16.8 billion.
Rising costs squeeze Shein profits
Rising costs and weaker demand have squeezed Shein's profits, especially in the second quarter.
US sales fell more than 10% in the three months through August and early September, and global web traffic is also slipping, so challenges are likely to continue.
Still, analysts see earnings estimates for Shein in 2026 and 2027 may be too optimistic, and margins will face growing pressure, with the European Union eliminating a customs exemption on low-value parcels in July, but for now, bouncing back won't be easy.