Hong Kong —
Shein was the ultimate disruptor in fashion. By turning online trends into $11 jeans or $3 crop tops in a matter of days, the ultrafast fashion retailer overtook established companies such as Zara and H&M, prompting it to eye an IPO that would value the company at nearly $100 billion.
But after years of delay amid failed attempts to go public in New York and London, the Chinese-founded company is staring down a starkly different reality marked by increasing struggles as it is set to list in Hong Kong on Tuesday. In an initial public offering last week, Shein sought to raise $1.7 billion, valuing the company at around $26 billion – down more than 70% from its peak valuation of $98.2 billion in 2022.
The sharply lower valuation underscores investors’ concerns about its business prospects amid increased competition, geopolitical pressure, and questions surrounding its sustainability and labor practices.
Last year, Shein saw its net income plunge 39% from a year ago, despite a growth in revenue, according to its prospectus released in July. But in the first quarter this year, its losses swelled to $99 million.
