Shein’s 2022 sales grow 4x ahead of IPO to close in on Zara

China-founded Shein started surging in popularity in 2020 amid the Covid-19 pandemic, as customers who were stuck at home logged on to the online retailer to buy cheap clothes. The financials of its parent firm reflect this rise.

Roadget Business, Shein’s Singapore-incorporated entity, generated US$21.6 billion of revenue in 2022, roughly 4x of the previous year, according to data from Alternatives.pe.

While cost of sales and selling and marketing expenses grew at around the same rate, Roadget Business achieved a net profit of US$634 million, up by over 3x from 2021.

Notably, Shein expanded rapidly into Southeast Asia in 2022, not long after moving its parent firm to Singapore from China.

Leonard Lin, Shein’s general manager for Singapore, previously told Tech in Asia that the company viewed the city-state, Thailand, Malaysia and the Philippines as key markets for growth.

Some of Shein’s investments in these markets involved handling offline events like pop-up stores and strengthening its regional delivery network.

See also: Shein’s rapid rise in Southeast Asia could topple ecommerce giants

The company’s net cash used in investing activities hit US$669 million in 2022, mainly due to its US$483 million purchase of short-term financial products. While Shein’s holding firm did not specify what these products were, they are typically liquid assets that are bought to hold cash for future opportunities.

Shein also ended 2022 with US$2.26 billion in net cash from operations.

Tech in Asia has reached out to Shein for comment.

Subsidiaries of Roadget Business include Shein Service Philippines, Guangzhou Shein International Import and Export, Singapore-based Fashion Choice, and Brazil-based In Glow.

Roadget Business also has two Ireland-based units: Infinite Styles Ecommerce and Infinite Fashion Ecommerce. The latter wholly owns US-based Shein Distribution.

Roadget Business’ 2022 revenue result places it behind Zara parent firm Inditex, which recorded 32.6 billion euros (US$34.8 billion) in net sales in the same year. The Spain-headquartered company owns other fast-fashion brands such as Bershka and Pull & Bear.

But Shein’s Singapore entity leapfrogged another rival, Sweden’s H&M Group, which registered 21.2 billion Swedish krona (US$21.3 billion) in net sales for 2022.

Roadget Business was well positioned for further growth in 2023, with Shein acquiring a one-third stake in Sparc Group – the US-based parent of Forever 21 – in August of that year. The deal gave Shein access to Forever 21’s strong offline presence, while the latter expanded its brand distribution through Shein’s online channels.