Sales of Chinese retailer Shein in Europe fell by almost 14%

Chinese online retailer Shein reported a decrease in sales in Europe in the second quarter by 13.9%, to $ 3.77 billion (about 318.2 billion rubles), reports Reuters, citing the first statements of the company after going public. Also about the fall in sales writes the Financial Times.

Sales fell after Shein raised prices and reduced spending on online advertising ahead of the introduction by the European Union from July 1, a fee of €3 (about 288 rubles) on inexpensive e-commerce parcels.

Shein warned that the European charges could have a bigger impact on the company’s business than the abolition of duty-free travel for low-cost parcels in the US.

American revenue in the second quarter decreased by 6%, to $ 2.5 billion (about 211 billion rubles), and the total grew by 0.9%, to $ 11.08 billion (about 935.2 billion rubles), thanks to increased sales in Latin America.

Shein’s adjusted net profit in the second quarter fell by 67% to $228 million (about 19.2 billion rubles). Margins fell from 6.2 to 2.1 percent. The increase in the cost of aviation kerosene and cargo transportation due to the conflict in the Middle East has put pressure on the indicators.

Since entering the Hong Kong stock exchange on September 1, Shein shares have fallen by 27.3% against the placement price of 48.56 Hong Kong dollars (about 523 rubles) per share.

Earlier, the Financial Times, citing a draft annual report of the European Commission, reported that the share of trade between EU countries in 2024 decreased from 23.5 to 22%, for the first time since 2016, if you do not take into account the period of the pandemic. The document noted that national regulations continue to make it difficult for companies to operate in the single market.