Shein posts £2.5bn UK sales as Hong Kong IPO struggles

Shein announced UK revenue of £2.58bn for 2025, pushing its pre-tax profit up 18% to £45m, even as the company faces a troubled IPO. Regulators rejected attempts to list in New York and London over labour-practice concerns, leading the firm to float in Hong Kong at a $26.2bn valuation, far below its 2022 peak, and its shares slipped on debut and again after a quarterly profit plunge of 67% to £173m. Founder Xu Yangtian said the decline was driven by soaring oil prices and freight rates amid Middle-East tensions and cautioned that the second half of 2026 will remain uncertain.

In the UK, Shein celebrated milestones such as a Wireless Festival partnership, an Oxford Street pop-up, and a Christmas ad campaign, while operating expenses doubled to £27m and director remuneration rose. Analysts warn that a forthcoming EU and US tax crackdown on the de-minimis import exemption could curb the company's expansion.