Shein profit falls 67% as quarterly revenue edges higher

Shein reported second-quarter revenue of US$11.08 billion, up 0.9% from a year earlier, while adjusted net profit fell 67% to US$228 million in its first quarterly results since listing in Hong Kong. The fast-fashion company also recorded a 13.9% decline in European revenue and a 6% drop in US revenue for the three months ended June 30, 2026. The profit margin narrowed to 2.1%, from 6.2% a year earlier. Shein’s reported fulfilment costs rose 18.1% year over year. The results show a modest increase in overall sales alongside a steep fall in profit and lower revenue in two of its largest markets. Shein raised prices and reduced online advertising in Europe ahead of the European Union’s removal of a customs duty exemption for low-value parcels, which took effect July 1. That change came after the quarter covered by the results. The company has said the European measures could have a greater effect than the end of similar US duty-free treatment. The reported European revenue total is inconsistent across accounts of the results: some give US$3.77 billion, while another gives US$4.38 billion. The reported year-over-year decline of 13.