Shein Swings to $99 Million Loss as Trump Tariffs Weigh on Sales

Fast-fashion retailer Shein posted a first-quarter loss after new US tariffs on small-package imports slowed sales and increased operating costs.

Shein reported a first-quarter loss as higher US tariffs and weaker demand weighed on sales. [Photo: Shein X]

The Singapore-headquartered company, which was founded in China, reported a net loss of $99 million for the first three months of 2026, compared with net income of $395 million during the same period a year earlier, Peter Hoskins reported for BBC News.

The results come as Shein prepares for its planned stock market listing in Hong Kong, although the company has not disclosed the timing, size, or pricing of the proposed initial public offering (IPO).

Shein said the removal of the US import duty exemption for low-value packages by President Donald Trump's administration hurt sales in its largest market.

"In response to the increased duties and taxes, we are pursuing a wide range of options, including increasing our prices in the US market to offset a portion of the increased costs," the company said in its filing.

Shein also cited disruptions caused by the Iran conflict, saying the war weakened consumer demand, increased operating costs, and delayed deliveries in several markets.

The quarterly results also included a non-cash accounting loss of $328 million related to the revaluation of special investor shares that can later be converted into ordinary stock.