The fashion retailer attributed the loss to a $328m fair-value charge and higher US tariffs after the $800 de minimis exemption ended.
Shein posted a net loss of $99m for the quarter ended 31 March 2026, reversing a $395m profit in the same period last year. The company cited a $328m fair-value loss on convertible redeemable preferred shares as the primary driver.
The loss comes as Shein prepares for its Hong Kong listing, which received regulatory clearance on 10 July. Earlier attempts to list in New York and London were abandoned. The filing highlighted the removal of the US de minimis exemption in May 2025, which previously allowed duty-free imports under $800, as a key challenge.
Shein stated that the policy change increased fulfillment costs and led to higher tariffs of 10%-87.5% on US-bound shipments. The company is adjusting prices in the US to offset some of the additional costs.