Fast fashion retailer Shein doubles profits as it awaits IPO approval

Last Updated: June 15, 2024By

Shein’s Surging Success: A Fashion Phenomenon on the Rise

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Shein, that fast-fashion hotspot born in China, is making a bang, doubling its profits to over $2bn (£1.6bn) while eyeing a stock market debut in either New York or London.

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This fashion sensation is sweeping the globe, riding the social media wave to showcase its wares. According to the Financial Times, Shein raked in around $45bn in sales last year, a jaw-dropping figure sourced from insiders.

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Based out of Singapore these days, Shein is flexing its financial muscle, outshining heavy hitters like H&M, Primark, and Next. Although, let’s not forget about Inditex, the Spanish powerhouse behind Zara, Bershka, and Massimo Dutti, who still holds the profit crown with a cool €6.9bn (£5.9bn) last year.

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Over in the UK, Chancellor Jeremy Hunt has been cozying up to Shein’s bigwig, Donald Tang, aiming to lure the company into a London stock market debut. It seems Shein is eyeing London because they’re not too keen on the US Securities and Exchange Commission giving them the green light. If this goes down, brace yourselves, as it could be one of London’s grandest corporate entrances, with a valuation soaring up to $90bn.

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Shein’s meteoric rise has sent shockwaves through the UK’s online fashion scene, with giants like Asos and Boohoo feeling the heat. Just as these British titans were catching their breath post-pandemic boom, Shein waltzed in, shaking up the game.

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How does Shein keep its edge, you ask? Well, part of its secret sauce is shipping straight from China to customers in the UK and US, dodging hefty taxes along the way. But hey, not everyone’s cheering for this maneuver, with calls for tax rule shake-ups echoing in the distance.

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Let’s not forget the brains behind this operation, Chris Xu, who kickstarted Shein’s journey. While most of the magic happens in China, Shein slings its fashion goodies worldwide. Back in April 2022, Shein strutted its stuff with a jaw-dropping $100bn valuation, securing its spot as the third most valuable startup globally.

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Fast forward to May last year, and Shein’s value took a bit of a dip, clocking in at just over $60bn. But fear not, investors, Shein’s got its sights set high, whispering about a potential $90bn valuation with a public listing on the horizon. As for comments? Shein’s keeping mum for now.

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