Shein wants to double profits to two billion US dollars despite tariff barriers

Chinese fast fashion platform Shein is expected to make a profit of $2 billion (1.73 billion euros) this year. That would be a doubling of the 2024 result. The upswing comes despite a difficult environment characterized by US tariffs. The retailer has tried to mitigate this by cutting costs and increasing prices.

According to Bloomberg, Shein forecasts double-digit earnings growth in 2025. This would be an increase from the $1.1 billion reported last year. The recovery was accelerated by a strong performance in the first quarter. During this period, sales reportedly exceeded $10 billion, while profits topped $400 million, according to the media report.

Part of the increase in sales was attributed to increased consumer spending in the United States. This came ahead of President Donald Trump’s repeal of the ‘de minimis’ tax exemption on Chinese goods. Shein is also believed to have increased prices to pass the tariff burden on to consumers. At the same time, marketing expenses were reduced.

While the finances appear to be stable, Shein is facing a number of challenges elsewhere that could impact its overall performance. In France, where Shein recently opened its first physical store, the government temporarily suspended operations on the Shein website after it emerged that the retailer was selling a child-looking sex doll. The country tightened its measures against Shein today. Ministers confirmed the inspection of 200,000 packages from the platform at Paris airport to check product compliance.

Shein is currently trying to gain investor confidence as the company continues to pursue an IPO in China. The decision to re-engage with the local stock market came after efforts in the US and UK encountered setbacks. The reason for this was increased concerns from the supervisory authorities there.