Shein, reported a 13% fall in pre-tax profits last year, highlighting the impact of ongoing trade policy uncertainties. Parent company Roadget Business Pte Ltd posted pre-tax profits of £0.97bn ($1.3bn) in 2024, down from £1.12bn ($1.5bn) in 2023, despite a 20% increase in global sales to £27.7bn ($37bn).
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The decline in profit followed rising selling and marketing costs. Shein warned that changes to US tariff policies since April, coupled with their "frequent evolution," have "increased the level of uncertainties in the global economy" and may affect the company's future financial performance. Trade in the US reportedly suffered after the Trump administration closed a loophole allowing imports under $800 to bypass certain checks and duties.
In addition, the company faced scrutiny over tax practices in the UK. Accounts filed at Companies House showed that Shein Distribution UK generated £2bn in sales in 2024 but paid only £9.6m in corporation tax, reportedly by shifting income to Singapore.
The company is also exploring a potential listing on the Hong Kong stock exchange following earlier attempts in the UK and US, signalling continued strategic growth despite regulatory challenges.
Source: www.retailgazette.co.uk
