Shein's Slowing Revenue Growth

(Reuters) – Online retailer Shein's revenue growth slowed to 23% in the first half of this year, down from 40% last year, according to a report by The Information.

The slowdown coincides with increasing competition from the Chinese bargain shopping site Temu, which has gained popularity in the U.S. in recent years.

The report stated that Shein's profit has declined by over 70%, totaling just below $400 million in the first half of this year. Revenue during this period reached $18 billion.

Known for selling $5 tops and $10 dresses, Shein's rapid growth stems from its low-cost business model, shipping parcels directly to customers worldwide from factories in China.

Last year, the company was valued at $66 billion in a fundraising round and has held informal investor meetings this month in preparation for a planned initial public offering (IPO) in London.

Shein does not publicly disclose its global results but recently filed information showing its British business generated 1.55 billion pounds (approximately $2 billion) in revenue for 2023.

Shein did not respond to requests for comment.