Chinese fast-fashion giant Shein clocked USD 2 billion in profits from around USD 45 billion in gross merchandise value online last year, according to a Financial Times report.
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The Singapore-based Shein had recorded net income of USD 700 million in 2022 and USD 1.1 billion in 2021, according to the British media outlet, which cited “a financing document” it had seen and “four people close to the company.”
The Shein figures surpass the world’s two biggest fashion retailers, H&M and Inditex, posted profits of USD 820 million and USD 5.8 billion, respectively in their latest financial years, prompting industry experts to coin the Asian giant as the world’s largest fashion retailer.
The update comes as Shein awaits regulatory approval on its share listing, with the Financial Times citing people familiar with the situation to say that the China Securities Regulatory Commission and the Cyberspace Administration of China could approve the share sale “in the coming weeks.”
It is unclear if Shein will list in London or New York, with New York being Shein’s first choice and London deemed a second option given the unfavourable atmosphere for Chinese firms listing in the U.S.
News first began circulating about a Shein U.S. IPO in 2020, but the company shelved the plan partly due to unpredictable markets amid rising U.S.-China tensions.
Since then, fragile Sino-American ties and volatile markets have forced Shein to push back plans several times.
Shein founder Chris Xu has made efforts to distance the Singapore-headquartered firm from China and diversify supply chains. However, lawmakers in Washington are demanding more disclosure on its business operations and China risks, and Beijing regulators are also vetting the offering, according to Reuters.
Shein is headquartered in Singapore, with more than 10,000 employees in China and only 200 in Singapore.