Shein’s Slumping Profits Threaten IPO Plans as Competition From Temu Intensifies

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Shein’s profitability is plummeting, raising concerns about its planned initial public offering (IPO), according to The Financial Times. The fast-fashion giant’s net profit dropped nearly 40% to $1 billion in 2024, as it faces mounting competition from rival Temu and shifting market conditions.

Shein’s Valuation Under Pressure

Shein was valued at $66 billion in 2023, but some stakeholders are now pushing for a reduction to $30 billion to attract investors.
Rising competition from Temu and slowing growth are forcing Shein to reassess its market position.
A lower valuation could help Shein move forward with an IPO, which it aims to complete in the first half of 2024.

Can Shein Overcome Its IPO Challenges?

With falling profits and increasing market pressure, Shein’s IPO prospects remain uncertain. If the company cannot stabilize earnings or justify its valuation, its public market debut could face significant hurdles.

1 1 minute read