Shein Forecasts Profits to Soar to $2 Billion Despite Tariff Challenges

Shein remains bullish against all odds. The Chinese ultra-fast fashion platform forecasts a profit of $2 billion for this year, double that of last year, with margins growing on the back of price increases and cost-cutting to soften the impact of U.S. tariffs.

According to Bloomberg on Thursday, the Chinese company expects double-digit sales growth. These estimates are published in a complex week for Shein after the scandal unleashed by the sale of child-like sex dolls on its platform. The French government has already initiated suspension proceedings against the online platform.

According to the agency, the Chinese platform’s earnings could double this year from the $1.1 billion reported last year. This growth is based on a strong first quarter, with revenues exceeding $10 billion and profit exceeding $400 million. This growth was driven, in part, by accelerating U.S. consumer purchases ahead of President Donald Trump’s elimination of the ‘de minimis’ tax exemption for small packages.

Shein’s earnings could double this year thanks to the boost it got in the first quarter

To protect its margins, the Chinese platform has reportedly raised prices, passing on the tariff burden to shoppers. It has also opted to reduce its traditionally aggressive ad spend, and benefited from the lack of activity by its main rival, Temu, in the U.S. market for much of the summer.

Shein is trying to maintain investor confidence, despite the adverse context in which it is immersed, to push ahead with an eventual initial public offering (IPO), seeking to accelerate its IPO abroad. However, it is awaiting Beijing’s approval to move forward. Although headquartered in Singapore, Shein remains under the supervision of the China Securities Regulatory Commission, which requires all companies with substantial ties to the country to undergo review before listing outside the country.

For its part, the Chinese ecommerce giant has been doubly in the news this week for its landing in France, with the opening of its first physical store in a country that, months ago, passed precisely the well-known anti-Shein Law to regulate the business of large foreign operators like itself.