Trade woes temper Shein’s profits in 2024 despite revenue climb

In 2024, amid stalling IPO plans, Shein’s profit dropped for the first time in three years, its audited financial statements show.

Revenue of Roadget Business Pte. Ltd., the Singapore-registered entity of the fast-fashion retailer, recorded US$1.3 billion in profit before income tax in 2024. That’s a 13% decrease from the previous year.

Meanwhile, its revenue jumped 20% year on year to US$37.1 billion, slowing from the previous year.

The Singapore-domiciled entity represents Shein’s global business, as the company transferred its headquarters from China to the city-state in 2021.

Roadget’s subsidiaries include Singapore-based Fashion Choice Pte. Ltd. and Ireland-based Infinite Styles Ecommerce Co. Limited, which owns US-based Shein Distribution Corp.

Shein has been trying to go public in London and the US in the last two years, but its plans have been held back. British and Chinese regulators reportedly couldn’t agree on the language to be used in the firm’s risk disclosure.

In July this year, Shein reportedly filed to list on the Hong Kong Stock Exchange. Its most immediate challenge now, however, is navigating the ongoing US-China trade war.

Tech in Asia reached out to Shein, but the firm declined to comment.

Marketing expenses slow down earnings

Founded in China in 2008, Shein rose to prominence during the pandemic for its cheap and trendy fashion items, some of which could go for less than US$5.

The firm designs and manufactures clothing at speeds that beat fast-fashion retailers like Zara and H&M, allowing it to respond quickly to consumer demand and trends.

It primarily works with a network of factories to manufacture products in China, though it has more recently begun working with factories in Europe and Latin America.

Over the years, Shein has splashed out marketing dollars to draw customers. In the US, marketers noted how Shein and Chinese ecommerce platform Temu contributed to the surge in the cost of paid search ads during the Black Friday sale in 2024.

Shein also sponsored various events in different markets last year, like the Women’s Football Awards in London, and music festivals in Manchester and California.

Trade war woes

Dealing with competition