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Shein posts $99m quarterly loss as US de minimis exemption ends
The filing says the loss reflects slower US sales after import duty changes, plus a $328m paper charge tied to an accounting change for special investor shares.
Shein reported a quarterly loss of $99m (£74.1m) for the first three months of the year, saying sales slowed in the US after President Donald Trump removed an import duty exemption for small packages.
The company attributed part of the results to uncertainty around US China tariffs, which it said is currently paused, and also said the Iran war hit demand, increased costs, and delayed deliveries in some markets.
In its filing for a planned Hong Kong listing, Shein said it was exploring options to offset higher US duties and taxes, including increasing prices in the US. The first quarter also included a $328m paper loss from an accounting change related to special investor shares, whose value can shift before a listing.
Shein said it had 281m active customers in the year through March 2026, up more than 16% year over year, who placed more than one billion orders. On 10 July, the China Securities Regulatory Commission approved the Hong Kong share sale after earlier attempts to list in New York and London.
The company pointed to the end of the so called de minimis exemption, which previously allowed goods valued at $800 or less to enter the US without paying tariffs, a change it said has adversely affected its US sales and overall growth. The White House said the broader exemption was being used to evade tariffs and funnel synthetic opioids to the US, according to BBC Business.