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

Sept 28 — Fast-fashion platform Shein returned to profit in ​the second quarter and made $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% 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 $2.40 billion for the quarter ended June 30, compared with a net loss of $99 million ‌in the previous quarter.

Shein said ​its Europe sales decreased by nearly 14% to $3,770 million 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% ‌higher ⁠at HK$35.28 before the results on Monday.

Since its September 1 debut in Hong Kong, Shein's shares have dropped 27.3% from the offer price of HK$48.56 ‌apiece.

(Reporting by Sneha ​Kumar, Shivangi Lahiri, Kumar ‌Tanishk in Bengaluru, ⁠Helen ​Reid in London; Editing by Shinjini Ganguli and Jonathan ​Ananda)

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