Shein reported a sharp drop in sales in Europe
Chinese online retailer Shein reported a decrease in sales in Europe in the second quarter by 13.9%, to $ 3.77 billion. This is reported by Reuters with reference to official documents submitted by the company to the Hong Kong Stock Exchange.
Chinese online retailer Shein reported a decrease in sales in Europe in the second quarter by 13.9%, to $ 3.77 billion. This is reported by Reuters with reference to official documents submitted by the company to the Hong Kong Stock Exchange.
This is directly related to the €3 fee imposed by the EU on July 1 for parcels worth up to €150, which forced Shein to raise prices. Investors expect the new levy to negatively impact the company's business in a market that accounts for about a third of revenue.
The company expects to see the main effect in the third quarter. Shein previously warned that it could be stronger than the abolition of duty-free importation on low-value parcels in the United States. U.S. revenue also fell 6% to $2.5 billion, while total sales rose only 0.9%, driven by Latin America.
Since the initial listing on the Hong Kong Stock Exchange on September 1, Shein shares have fallen 27.3%.
Ekaterina Naumova
