Shein UK revenue hits £2.5bn despite IPO woes
Fast-fashion giant Shein took in more than £2.5bn in UK revenue last year as it tightens its hold on British shoppers despite its IPO woes.
The e-commerce firm generated £2.58bn in revenue in 2025, newly published accounts show, as its pre-tax profit widened by 18 per cent to £45m.
Proof of Shein’s growing presence in the UK comes a month after its cut-price Hong Kong float, followed by a number of share price spooks.
The group’s initial public offering (IPO) at the start of September took place in its third-choice location after policymakers rejected its attempted floats in New York and London, citing concerns over its labour practices and lawsuits from its domestic competitors.
Shein had been valued at $100bn at its peak in 2022, but on its first day of trading in Hong Kong, the fast-fashion group was valued at $26.2bn (£19.3bn). Its shares fell on debut before recovering to a 0.12 per cent loss by the end of its first day of trading.
Last week, the group shares fell 14 per cent in one day after it reported a 67 per cent quarterly profit fall to £173m in its first results since the IPO.
Xu Yangtian, Shein’s founder and chairman, said this profit slump was “primarily driven by a sharp spike in oil prices and freight rates amid Middle East geopolitical tensions”. The group’s trading environment will “remain uncertain in the second half of 2026,” he warned.
Shein braces for tax crackdown
Although the rapid rise of the e-commerce giant, and its rival Temu, has threatened the UK’s fast-fashion retailers, like Primark and Boohoo, analysts have predicted that a tax crackdown could slow its growth.
Shein and its counterparts have benefitted from the so-called de minimis threshold, which exempts small packages from paying import duty.
Retailers have warned that closing this loophole in the EU and US could prompt Shein and Temu to shift their efforts to the UK in the short term, but the government’s crackdown will take effect in October 2028.
Shein’s UK arm hailed several “significant milestones” last year, including a partnership with Wireless Festival, a pop-up on Oxford Street and its Christmas ad campaign.
The group’s operating expenses, which account for admin and distribution costs, more than doubled to £27m.
The company employed 113 people last year, most of whom the group said provide “marketing expertise for the UK market”, up from 91 the year before. The pay packages of Shein UK’s two directors rose from £135,000 to £242,000. The firm did not pay out a dividend.