Shein sees profits fall and shares slide further
The fast-fashion seller reports sharply lower adjusted profits and weaker sales in Europe and the United States.
Shein recorded adjusted net profit of 228 million dollars in the second quarter of 2026, 67 per cent less than a year earlier. The figures heighten concerns about higher transport costs, European regulation and the sustainability of its low-cost model.
The results cover the three months to the end of June and are Shein’s first quarterly figures since its listing in Hong Kong. Revenue came to 11.08 billion dollars, an increase of 0.9 per cent. Profitability therefore fell much more sharply than revenue.
The regional differences are particularly striking. According to the reported figures, revenue in Europe fell by 13.9 per cent to 3.77 billion dollars. In the United States, revenue declined by 6 per cent to 2.5 billion dollars. Growth therefore came mainly from other markets.
In reporting on the results, Shein points to higher freight and handling costs. The company operates a model in which clothes are shipped quickly and often by air to customers. The European levy of 3 euros on small e-commerce consignments, which applies from July, is also increasing the pressure on low-cost orders.
The share price reacted negatively to the figures. Investors are looking not only at revenue growth, but above all at how much of it remains after transport, marketing, regulatory and pricing-adjustment costs have been deducted. A sharp share-price reaction is not proof that the business model has failed, but it is a signal that the market is attaching considerable weight to lower margins.
For consumers, the development could lead to higher prices or fewer promotional offers. At the same time, the landscape is changing for European online retailers: a competitor that has to raise its prices gains less advantage from extremely cheap shipping. Whether that results in greater demand for European providers depends on price, range, delivery times and enforcement of the new rules.
One story, several perspectives
What is established
- Shein’s adjusted net profit fell by 67 per cent in the second quarter.
- Revenue in Europe and the United States declined.
- The company reports higher costs and operates under changing trade and e-commerce rules.
Left
Arguments The figures show that cheap fashion does not exist without social costs. Stricter rules and higher prices could create room for fairer working conditions, less overconsumption and greater oversight of the consequences of rapid delivery.
Values Sustainability, labour rights, consumer protection and fair competition.
Consequences The left fears that companies will otherwise pass costs on to workers, the environment or small producers.
Centre
Arguments Rules should protect consumers and provide a level playing field, but also be workable for companies and customs authorities. The market should be able to determine which models are viable, while transparency about prices and costs is improved.
Values Balance, predictable regulation and freedom of choice.
Consequences The centre stresses that overly rapid policy changes could disrupt logistics and prices.
Right
Arguments The share-price fall mainly shows that investors attach greater importance to profit and efficiency than to growth stories. European charges should not become so high that consumers on lower incomes lose their cheap option or companies move to other markets.
Values Low prices, entrepreneurship, competition and restrained government intervention.
Consequences The right fears that additional levies and rules will leave consumers footing the bill without resolving the underlying problems.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The financial figures and regional revenue developments were reported by Reuters. The text presents the consequences for consumers and competitors as possible effects.
- confirmed Shein’s adjusted net profit was 228 million dollars in the second quarter and fell by 67 per cent. — Reuters report on the quarterly results. source
- confirmed Revenue was 11.08 billion dollars and rose by 0.9 per cent. — Mentioned in the same Reuters report. source
- confirmed European revenue fell by 13.9 per cent to 3.77 billion dollars and US revenue by 6 per cent to 2.5 billion dollars. — Regional figures from the Reuters report. source
- confirmed Shein reported its first quarterly figures since its listing in Hong Kong. — The timing of the listing and the first public results are confirmed by AP and Reuters. source
- confirmed The European levy of 3 euros on small e-commerce consignments applies from July. — Mentioned in Reuters’ account of the results. source
Editor's note
The quarterly figures and regional revenue developments come from Reuters. The precise impact of European regulation and logistics costs on future prices remains an expectation, not an established consequence.Sources
- Shein quarterly profit falls 67% as costs jump, Europe sales slump — Reuters via MarketScreener
- Fast-fashion giant Shein’s shares fall after Hong Kong trading debut — Associated Press
- Shein reveals slowing profit in filings ahead of Hong Kong debut — The Japan Times
More on this in Dutch media
- NRC — „shein fast fashion”
- NOS — „shein fast fashion”
- Het Parool — „shein fast fashion”