Photo credit: Melissa Goh / Tech in Asia
Shein has logged a significant profit increase for 2023, earning more than US$2 billion – a substantial rise from the US$700 million net income recorded in 2022, the Financial Times reported, citing a financial document.
The company’s gross merchandise value, which reflects the total sales on its platform, reached around US$45 billion in 2023.
With these improvements, the ultra-fast fashion company’s financial performance has outpaced some of its industry counterparts, including H&M. The latter posted profits of US$820 million, the report noted.
Shein is in the process of seeking a regulatory green light for an IPO. The company reportedly believes the US Securities and Exchange Commission (SEC) would not approve its listing plans in New York. The downturn in Hong Kong’s financial market, which has affected fundraising opportunities, also casts doubt on the possibility of an IPO there.
For these reasons, Shein is looking to move its market debut to London, the reported said.
Shein’s operations, while headquartered in Singapore, are still heavily reliant on its Chinese roots, with a significant number of employees based in China. In February, US Senator Marco Rubio asked the SEC to block Shein’s attempt at going public, saying the company had to provide more information on its Chinese operations, among other issues.
See also: Shein’s rapid rise in Southeast Asia could topple ecommerce giants
Editing by Dhania Putri Sarahtika
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