SHEIN Shares Down 35% Since IPO After Weak Earnings

SHEIN Shares Down 35% Since IPO After Weak Earnings

SHEIN stock fell as much as 11% today after the Chinese fast-fashion giant reported first-half 2026 earnings. Revenue came in at roughly $20.6 billion, up just 1% year-over-year, while profit rose to about $2.36 billion from $1.13 billion the prior year — but adjusted net margin collapsed from 6.2% to just 2.1% in Q2.

The margin squeeze stems mainly from surging oil prices and shipping costs tied to Middle East tensions, compounded by mounting tariffs and regulation in Western markets — notably Europe, where France is preparing a fee of nearly €20 per item on fast-fashion goods and the EU is phasing out tax exemptions for low-value parcels. In response, SHEIN raised prices and cut online ad spend, losing 28 million monthly European users (down to 128 million), while US revenue fell 6% on tariff impacts.

The stock is now down 35% since its early-September IPO, valuing the company around $17.5 billion — a steep drop from its peak 2022 valuation of about $102 billion.