Shares of Shein Global Holdings fell nearly 14 per cent to a record low in Hong Kong on Tuesday after the online fashion retailer posted a 67 per cent drop in second-quarter profit in its first earnings report since listing, warning that tariff headwinds and logistics cost volatility would persist for the rest of the year.
The company said in an unaudited filing on Monday that profit for the June quarter slumped to US$228 million, while revenue edged up 1 per cent to US$11 billion.
Revenues from Europe and the United States, its largest markets, dropped 14 per cent and 6 per cent, respectively.
The declines were partly driven by the removal of customs duty exemptions for low-value goods in both markets. In response, Shein “raised prices and lowered online advertising spending” in Europe, according to the filing.
