Chinese retailer and fast fashion giant Shein has revealed it took a $99 million loss in the first quarter of 2026, following slow sales largely due to tariffs imposed by US president Donald Trump over small packages. This loss seems especially stark when compared with the financial results of the company's first quarter last year, which resulted in a net income of $395 million.
As per the BBC, the announcement of these financial results comes as part of Shein's preparation to join the stock market in Hong Kong. "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," Shein said.
Alongside the loss of sales, Shein also reported a $328 million paper loss due to an accounting change for special investor shares. Moreover, the company claims the Iran war had hit its demand, causing increased cost and delayed deliveries.
It is expected that the Hong Kong listing of Shein's stock will go live within the coming months. Things may start to pick up then, as the fast fashion giant continues to show promise to investors, but right now Trump's tariffs have hit it especially hard.
