Chinese e-commerce giant Shein has suffered a major financial blow, with its net profit dropping by more than $1 billion in 2024, according to a new report. The decline comes after the Trump Administration shut down a lucrative tax loophole the company had been using to send items to the US, sparking fears of even greater losses ahead.
Despite an increase in sales, Shein’s bottom line has taken a hit. A report by the Financial Times revealed that while the company’s sales grew by 19% to $38 billion, its profit figures fell significantly short of initial expectations. Internal projections had suggested a net profit of $4.8 billion and sales of $45 billion for 2024, but the actual numbers have come in far lower, according to sources with knowledge of the matter.
