Shein reported a net loss of $99 million in the first quarter of 2026, reversing a $395 million profit a year earlier, as new import levies eroded its largest market.
US revenue fell 14.3% to $2.04 billion in the period, with the United States accounting for 22.5% of total sales, down from 29.4% in 2023. The company said Chinese-origin goods shipped to the US now face tax rates of 10% to 87.5% after Donald Trump ended the de minimis exemption for small parcels. Overall sales edged 1.1% higher to $9.05 billion, supported by 281 million active customers placing over one billion orders in the year to March 2026. The quarterly loss included a $328 million charge from an accounting change for special investor shares.
Pressure from new trade barriers is mounting. The European Union imposed a €3 levy on low-value imports in July 2026, threatening a region that generated about a third of Shein's 2025 revenue. Meanwhile, the China Securities Regulatory Commission approved Shein for a Hong Kong share sale on 10 July 2026.