Shein UK revenue exceeds £2.5bn amid post-IPO volatility

Shein recorded UK revenue of £2.58bn in 2025, according to newly published accounts, as the fast-fashion retailer expanded its market share despite recent difficulties with its initial public offering. The e-commerce firm reported that its pre-tax profit increased by 18 per cent to reach £45m. This financial performance highlights the company’s growing influence on British consumers, even as it navigates challenges following its recent listing on the stock exchange.

The disclosure arrives one month after Shein completed a discounted listing in Hong Kong, a move that has been accompanied by significant share price fluctuations. The group’s initial public offering took place in September after regulators in New York and London rejected its earlier applications. Those rejections were attributed to concerns regarding the company’s labour practices and legal disputes with domestic competitors. At its peak in 2022, Shein was valued at $100bn, but its valuation dropped to $26.2bn on its first day of trading in Hong Kong. Although the shares initially fell, they recovered to close the debut session with a marginal 0.12 per cent loss.

Recent trading has been volatile, with the group’s shares dropping 14 per cent in a single day last week. This decline followed the announcement of a 67 per cent fall in quarterly profits to £173m, marking the company’s first results since its listing. Xu Yangtian, the founder and chairman, attributed the profit slump to a sharp increase in oil prices and freight rates caused by geopolitical tensions in the Middle East. He warned that the trading environment is expected to remain uncertain throughout the second half of 2026.

Analysts suggest that while Shein and its rival Temu have pressured traditional UK retailers such as Primark and Boohoo, a planned tax crackdown could slow their growth. These companies have benefited from the de minimis threshold, which exempts small packages from import duties. Although closing this loophole in the European Union and the United States may drive more business to the UK in the short term, the government’s regulatory changes are not scheduled to take effect until October 2028.

Shein’s UK operations cited several milestones during the year, including a partnership with Wireless Festival, a pop-up store on Oxford Street, and a Christmas advertising campaign. Operating expenses, which cover administration and distribution, more than doubled to £27m. The company employed 113 staff members last year, up from 91 the previous year, with most providing marketing expertise for the UK market. The remuneration for Shein UK’s two directors increased from £135,000 to £242,000, while the firm did not distribute a dividend.