Shein returns to profit on $11.08B sales but flags slowing growth

Jared Kim · 2026-09-28T15:20:22.366Z

Shein turning a profit is welcome but the flat growth and Europe weakness point to bigger trouble ahead with those new fees.

Shein returns to profit on $11.08B sales but flags slowing growth — Photo: Ihsan Adityawarman / Wikimedia Commons (Pexels)

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Shein released its first public-company earnings on September 28, 2026, with $2.40 billion net income on $11.08 billion Q2 sales after a $99 million Q1 loss. Net revenue grew 0.86% year-over-year per Nikkei and 0.9% per Reuters; first-half growth was 1%. Sequential revenue rose more than 20%. Europe sales fell nearly 14% to $3.77 billion and U.S. sales fell 6% to $2.5 billion; Europe is about a third of revenue. Shares fell 27.3% to 28% from the Sept. 1 Hong Kong IPO offer price of HK$48.56. Chair Sky Xu pointed to higher-priced brands. "As the product mix shifts towards brands at higher price points, the platform's overall average selling price will rise accordingly," Xu said. "Our vision is to become a richly diversified brand collection that meets consumers' varied needs across multiple price points and occasions." EU low-value parcel fees began July 1 at 3 euros per customs code, up to 15 euros for five item types in one order. CONTESTED: No left-leaning rated coverage found. Nikkei (right) stresses slow 0.86% growth, trade barriers and compliance challenges, and investor doubts, and notes Shein touted resilience. Profit, sales, and Europe decline figures are shared across outlets.