Sept 28 (Reuters) – Fast-fashion platform Shein returned to profit in the second quarter and made $11.08 billion in sales, but warned about an uncertain second half as it unveiled its first results as a public company on Monday.
An increase in total orders fulfilled supported a more than 20% sequential jump in Shein’s second-quarter net revenue, although the Iran conflict continued to impact its Middle East operations.
The Singapore-headquartered online retailer posted a net income of $2.40 billion for the quarter ended June 30, compared with a net loss of $99 million in the previous quarter.
Shein said its Europe sales decreased by nearly 14% to $3,770 million in the second quarter, reflecting weaker volumes due to higher prices and lower online advertising spending in anticipation of the European Union imposing fees on low-value e-commerce parcels from July 1.
The company’s shares had closed 0.5% higher at HK$35.28 before the results on Monday.
Since its September 1 debut in Hong Kong, Shein’s shares have dropped 27.3% from the offer price of HK$48.56 apiece.
(Reporting by Sneha Kumar, Shivangi Lahiri, Kumar Tanishk in Bengaluru, Helen Reid in London; Editing by Shinjini Ganguli and Jonathan Ananda)
Comments