Shein Warns 35% Europe Revenue at Risk as U.S. Tariffs Drove 14% Sales Drop
Updated
Updated · Quartz · Aug 10
Shein Warns 35% Europe Revenue at Risk as U.S. Tariffs Drove 14% Sales Drop
3 articles · Updated · Quartz · Aug 10
Summary
IPO filings show Shein fears Europe could suffer the same tariff-led slowdown as the U.S., where passing higher import costs to shoppers hurt demand after May 2025 price increases.
U.S. revenue fell more than 3% in 2025 and dropped 14% year over year in the latest first quarter after duties on Chinese goods rose to 10%-87.5% from 0%-62.5%.
Europe—35% of 2025 revenue—already showed weaker momentum before the EU ended its low-value parcel exemption in July and replaced it with a 3-euro levy per product category.
Profitability has deteriorated alongside that slowdown: companywide profit fell 39% in 2025, and Shein posted a $99 million first-quarter loss versus a $395 million profit a year earlier.
The warning lands as Shein prepares a Hong Kong IPO after Chinese approval in July, seeking a $30 billion-$40 billion valuation, far below its $98.2 billion 2022 funding-round mark.