E-commerce giant Shein reported a quarterly loss of $99 million for the first three months of the year, compared to revenue of $395 million for the same period a year earlier.
BBC News says the swing from profit to loss is a reflection of slowing sales in the face of uncertainty over the tit-for-tat U.S.-China tariffs wars, which is currently paused, plus the permanent removal in 2025 of the de minimis duty exemption enjoyed by all U.S. imports with a value of less than $800.
The fast-fashion company, headquartered in Singapore but founded in China, is preparing for its stock market debut in Hong Kong , although the filing did not give any details on the size, timetable or pricing of the planned initial public offering (IPO).
"In response to the increased duties and taxes, we are pursuing a wide range of options, including increasing our prices in the U.S. market to offset a portion of the increased costs," Shein said in the filing.
The company also said the U.S.-Israel war on Iran had cooled demand, increased costs and caused delays of deliveries in some markets.
