Shein projects $2b profit in 2025 despite tariff challenges

Shein, the Singapore-based ecommerce company, told investors it expects to reach US$2 billion in net income in 2025, according to sources cited by Bloomberg.

The company also projected mid-teen percentage growth in sales for the year.

Shein previously reported US$1.1 billion in net income for 2024, and according to people familiar with the matter, net income topped US$400 million in Q1 2025, with revenue nearing US$10 billion as US consumers rushed to buy before tariff changes.

Recent profit gains have come from price increases and reduced ad spending, despite a drop in online traffic after US tariff policy changes.

Shein is seeking to maintain investor confidence ahead of a delayed IPO and is trying to list in Hong Kong after failed attempts in New York and London due to regulatory scrutiny.

The company remains subject to review by China’s securities regulator due to its links to the country.

Shein’s valuation, which reached US$66 billion in a 2023 funding round after being valued at US$100 billion, is now under investor pressure to be cut by half.

Other countries are following the US in removing duty waivers, and France has suspended Shein’s marketplace, adding to the company’s challenges.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Shein’s profit jump hides strain as tariff shields fall

Shein’s net income topped $400 million in Q1 2025 1. Sources tie the jump to a pre-tariff rush by U.S. shoppers. U.S. sales fell 8% year over year in September 2025, the first full month after the Trump administration ended the de minimis (the U.S. duty-free threshold for low-value imports) on August 29, 2025 1.
Profit gains came from “price increases and reduced ad spending” 2. That clashes with past claims that low prices came from supply chain efficiency, not tariff gaps. Reuters tracked 70 low-cost items and found prices 12.5% above pre-tariff levels by late May. The 10 items with the biggest jumps rose 123% from $31 to $69 between April and July 2025 2.
Shein and Temu handled over 30% of de minimis shipments in 2022 2. At the same share in 2024, that equals about 400 million duty-free packages 2. The exemption’s end removes a cost edge that traditional retailers, who pay “hundreds of millions in import duties annually,” never had 3.

Compliance bottlenecks hit cross-border direct-to-consumer sellers

All U.S.-bound imports now need formal customs entries and duties. Overseas retailers need landed-cost calculators (tools that show the total price including tariffs plus taxes), automated Harmonized System (HS) classification, and Delivered Duty Paid (DDP) compliance tools. About 4 million daily parcels that once entered duty-free now face tariffs of $80-$200 per package, based on country rates 4.
Application programming interface (API) providers that offer real-time duty calculation plus tax collection at checkout can win budget from merchants now absorbing “tariffs, customs paperwork, and slower shipments” 5 2. This is a business-to-business (B2B) software play tied to a shift that hits 1.36 billion yearly U.S.-bound small-parcel shipments that once moved under de minimis rules 4.
Logistics operators are seeing new demand for bonded warehousing (customs-controlled storage) and pre-clearance services (customs processing before arrival). Parcel carriers and postal operators worldwide paused some U.S.-bound shipments to adjust to new paperwork and payment steps 6. The strain is sharp at John F. Kennedy International Airport (JFK), which previously handled 750,000 to 1 million de minimis parcels per day 4.