'Chein' considers raising prices after losses of $99 million
Shein has begun reviewing the prices of its products in the US market, following financial pressures stemming from new US tariffs, a move that could mark the end of the era of low-cost clothing for which the platform is globally renowned.
The Singapore-headquartered, China-founded fast-fashion company announced a loss of $99 million during the first quarter of this year, compared to a net profit of $395 million in the same period last year, according to the BBC.
The company stated it is considering “a wide range of options,” including raising prices in the US market to offset part of the additional costs resulting from increased tariffs and taxes.
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It added that the war with Iran also affected demand and raised operating costs, in addition to causing delivery delays in some markets.
The financial results came after a slowdown in Shein’s sales in the United States, following US President Donald Trump’s decision to revoke the tariff exemption that allowed low-value parcels to enter the country duty-free, amid the continuing repercussions of the trade war between Washington and Beijing, despite the temporary suspension of reciprocal tariffs.
The first-quarter results included a non-cash loss of $328 million, resulting from an adjustment in the valuation mechanism for certain investor shares, which are convertible into ordinary shares prior to the company’s stock exchange listing.
Documents showed that Shein’s number of active customers reached 281 million during the year ended in March 2026, an increase of over 16% compared to the previous year, while customers made more than one billion purchases.
This comes as the company prepares to list its shares on the Hong Kong Stock Exchange, after receiving approval from the Chinese securities regulator on July 10, following the failure of its previous attempts to list on the New York and London stock exchanges. The offering is expected to be completed in the coming months.
Trump had signed an executive order ending the tariff exemption known as the “de minimis” rule, which allowed goods valued at $800 or less to enter the United States duty-free. The decision took effect on August 29, 2025, after its scope was expanded to include shipments from various countries around the world, whereas it had previously been limited to imports from China and Hong Kong.
Shein confirmed in its documents that the revocation of this exemption negatively impacted its sales within the United States and weakened its net revenue growth rate.
