The fast-fashion-e-sailer Shein is said to have suffered a decline in its net profit by almost 40 percent to $ 1 billion in 2024 because the competition with competitor Temu increased.
Two sources familiar with the matter told the British newspaper Financial Times that sales for the year as a whole had risen by 19 percent to $ 38 billion, but the net profit shown was far below the $ 4.8 billion expected for 2024 have.
Such a prediction was made in a presentation for investor: inside 2023, which was also viewed by the British financial newspaper and in which a sales forecast of $ 45 billion was forecast for the year.
The latest figures came from internal projections that were created before the final annual financial statements, according to the sources of the Financial Times. Shein did not respond to the request of the media company for a comment.
The disappointing results could be another obstacle to the lengthy efforts of the company based in Singapore for an IPO on the London Stock Exchange, for which it is currently fighting in addition to geopolitical pressure for the approval of the authorities.
While legal challenges by non-governmental organizations and uncertainties in the supply chain dominated until recently, the re-election of US President Donald Trump also questioned the IPO.
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