Fast-fashion giant Shein saw a sharp drop in profits last year as it struggled with growing competition from a low-cost rival.
It adds another challenge for the garment group amid speculation its long-planned float on the London stock market could be delayed.
The company, which is based in Singapore but makes most of its clothes in China, saw its profits drop by nearly 40 per cent to £792m in 2024 – despite a 19 per cent rise in sales to £30billion.
The update follows ultra-low-cost competitor Temu poaching some of Shein’s suppliers, forcing it to increase spending on marketing and shipping.
Competition: Shein saw its profits drop by nearly 40 per cent to £792m in 2024 – despite a 19 per cent rise in sales to £30billion
As a result, the fashion firm’s earnings fell well short of the £3.8billion projections made in 2023, the FT reported.
The gloomy results pile further pressure on Shein’s ambitions to list in London – with its plans for an April float likely to be delayed until later this year.
Shein declined to make a comment.
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