Shein returns to profit in second quarter, but warns of uncertain second half

Fast-fashion platform Shein returned to profit in the second quarter and made US$11.08-billion in sales, but warned about an uncertain second half as it unveiled its first results as a public company on Monday.

An increase in total orders fulfilled supported a more than 20-per-cent sequential jump in Shein’s second-quarter net revenue, although the Iran conflict continued to impact its Middle East operations.

The Singapore-headquartered online retailer posted a net income of US$2.40-billion for the quarter ended June 30, compared with a net loss of US$99-million in the previous quarter.

Shein makes lacklustre Hong Kong debut as investors fret about growth and regulatory risks

Shein said its Europe sales decreased by nearly 14 per cent to US$3.77-billion in the second quarter, reflecting weaker volumes due to higher prices and lower online advertising spending in anticipation of the European Union imposing fees on low-value e-commerce parcels from July 1.

The company’s shares had closed 0.5-per-cent higher at HK$35.28 before the results on Monday.

Since its Sept. 1 debut in Hong Kong, Shein’s shares have dropped 27.3 per cent from the offer price of HK$48.56 apiece.