Shein fast-fashion retailer hit by €86m loss due to US costs

FAST-FASHION retailer Shein, with offices in Rathcoole, reported net losses for the first quarter of the year as US trade tensions affected the business.

Shein reported a quarterly net loss of $99 million

(€86.8 million), compared to a net income of $395m a year prior.

According to a new filing ahead of the company’s Hong Kong listing, the slump is due to a decrease in sales after an import duty exemption on small packages was relieved by the US.

The company stated: “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.”

Net profit margins narrowed sharply to 4.9 per cent in 2025 from 8.7 per cent in 2024 in the latest filings.

The company received approval from the China Securities Regulatory Commission in early July for an initial public offering on the Hong Kong market.

The business previously attempted to get a foothold on the New York and London stock exchanges.

Europe overtook the US as the company’s biggest market in 2024 and an exemption of similar effect in EU states, including Ireland, was brought to an end at the start of July.

Shein recently expanded operations in Ireland with their new 16,000 sq ft facility in Greenogue Business Park.

The facility was previously managed by a third-party logistics provider and has now transitioned to Shein’s direct management, as the company scales its regional fulfilment network.

The opening follows Shein’s establishment of its EMEA headquarters in Dublin in May 2023 and further strengthens the company’s European expansion strategy.

At the time, Shein Corporate Communications Director Robin Kiely said: “Ireland plays an important role in our wider European growth strategy and this investment strengthens our ability to provide improved, more efficient services for customers across the country.”