Shein is planning its IPO on the London Stock Exchange in the near future. Figures on the company are therefore increasingly being published.
Profits at direct-from-China fashion e-commerce firm Shein plummeted 70 percent in the first half of 2024, largely due to increasing competition from competitors such as PDD Holdings’ Temu, The Information reported, citing two unnamed sources.
This is a major turnaround that Temu has provoked. The stock market evaluates the future potential of a company, and that doesn't look bright at the moment.
Revenue growth for the Singapore-based company fell to 23 percent during the period, down from 40 percent for the full year of 2023, while profits fell below $400 million (£308m) on revenues of $18bn, the report said.
Sales will also fall by 23% in the first half of 2024. Based on these figures, I would be surprised if the current valuations did not collapse.
This shows once again how fast-moving the market can be.