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

Shein reported its first results as a public company, returning to profit in the second quarter with $2.40 billion in net income and $11.08 billion in sales, after a $99 million loss in the previous quarter. The company said higher order volumes helped drive a sequential revenue increase, but first-half net revenue grew just 1% amid slowing demand and rising costs. European sales fell nearly 14%, as higher prices and reduced advertising weighed on volumes ahead of new EU fees on low-value e-commerce parcels; Europe accounts for about a third of Shein’s revenue. Shein warned of an uncertain second half, with the Iran conflict also affecting its Middle East operations, while its shares had fallen roughly 27% to 28% from their Hong Kong listing price.