Shein's IPO Valuation Falls to $40-50 Billion as US Tariffs Drive First-Quarter Loss

Shein is seeking to raise $2 billion to $3 billion in its initial public offering, targeting a valuation of $40 billion to $50 billion.

Financial documents disclosed ahead of the IPO show that Shein's revenue for the 2025 fiscal year rose 8% year-on-year to $41.85 billion, while net profit fell 38.7% to $2.06 billion. In the first quarter of 2026, the company swung to a net loss of $99 million, compared with a net profit of $395 million in the same period of 2025. The loss was partly attributable to a $328 million fair-value loss on convertible redeemable preferred shares, an accounting adjustment tied to changes in pre-IPO valuation.

The United States eliminated the de minimis tariff exemption from May 2025, imposing tariffs of 10% to 87.5% on Chinese goods sold directly or shipped through platforms. As a result, Shein's US revenue in the first quarter of 2026 fell 14.3% year-on-year to $2.04 billion, accounting for 22.5% of total quarterly revenue, down from 29.4% for the full year 2023.

Shein's valuation has declined from a peak of $100 billion in a 2022 funding round to the current $40 billion to $50 billion sought in the IPO.