📉 Profits Take a Hit
SHEIN's net profit in 2024 dropped 40% to $1B. This is a big shift from its earlier projection of $4.8B. Sales, however, grew 19% to $38B. Despite this, the numbers fell short of its expected $45B in revenue. These financial struggles now cloud its IPO plans.
📊 IPO Plans Face Trouble
SHEIN planned to list in London, but falling profits complicate things. The company recently slashed its IPO valuation. Reuters estimates a $50B valuation, 25% lower than before. Bloomberg says it could drop as low as $30B. These setbacks make investors cautious.
💰 US Tax Concerns
A key concern is the potential loss of a US tax exemption. If this happens, prices in the US could rise, hurting sales. The London IPO might now be delayed until late 2025. SHEIN has not yet commented on these developments, leaving uncertainty in the market.
🚀 What’s Next for SHEIN?
SHEIN's rapid growth is slowing, and profitability is under pressure. The fast-fashion giant faces tougher market conditions. A weaker IPO and higher costs could make its future challenging. For now, all eyes are on its next move and how it navigates these setbacks.
Is SHEIN’s rapid growth finally catching up with it?
