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In focus
- A sea change in Shein’s 2024 financials
- A look into our archives at why the firm’s business model may be falling out of fashion
- We want your insights!
Hello reader,
Business, like life, is all about timing.
If fast-fashion retailer Shein had gone public in 2023 – back when trade tariffs weren’t something you might discuss with your grandmother – it would have been a blockbuster IPO. But the company wasn’t able to time it quite right, as regulatory hurdles and scrutiny over its supply chain practices grew into big stumbling blocks.
These days, with the White House capable and willing to upend global trade seemingly overnight, a Shein IPO might not pack the same punch.
Today’s Top Story from my colleague Elyssa dives into Shein’s 2024 financials, and they could be a harbinger of what’s to come for the China-founded, Singapore-registered company, thanks to the trade war. For the first time in three years, its annual profits dropped, despite a revenue bump.
That said, the firm still recorded US$1.3 billion in profit before taxes, so don’t cry for the C-suite yet. But as a story out of our archives from Insights writer Jacob Cooke details, the real test for Shein may yet be to come.
Peter Cowan, engagement editor
Top Story
Trade woes temper Shein’s profits in 2024 despite revenue climb
Shein’s brand activation at Stagecoach Music Festival / Image credit: Shein
Shein may be attempting to brace for storms ahead, if its latest financials are anything to go by. Between 2023 and 2024, the firm’s selling and marketing expenses grew faster than revenue.
Perhaps this is a sign that the company foresaw trouble for its ultra-fast fashion model, which is built largely on China-based production, and was racing to lock in market share while it still could. Dive into this earnings piece and you be the judge.
From our archives
Temu’s logistics power play puts Shein on the defensive in the US
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