Shein says operating profit fell 50% in first half of 2026

Fast-fashion giant Shein reported Monday that its operating profit, or adjusted earnings before interest and taxes, dropped 50.4 percent in the first half of the year.

The Chinese-founded company's net income attributable to shareholders reached $2.3 billion in the first six months of 2026, up from $1.1 billion in the same period last year.

Monday's results were Shein's first earnings report since its initial public offering this month, which put the company's valuation at around $26.3 billion -- well short of the nearly $100 billion during private fundraising rounds in 2022.

The retailer also reported a one-percent on-year growth in net revenue to $20.1 billion, while operating income fell by 52.9 percent.

"We expect the external environment to remain uncertain in the second half of 2026, with tariff headwinds and logistics cost volatility likely to persist," Shein's chairman Sky Xu said in a filing to the Hong Kong Stock Exchange.

But, he added, Shein remained "cautiously optimistic" for the rest of this year.

The company made a tepid Hong Kong debut after raising $1.7 billion in its high-profile IPO, but its stock price has dropped more than 27 percent since then.