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 E-commerce giant SHEIN has revealed a quarterly loss of $99 million, weighed down by slowing sales after the United States revoked customs exemptions on small parcels, alongside a substantial one-off accounting expense. The figures were disclosed in financial documents published ahead of the company's highly anticipated Initial Public Offering (IPO) on the Hong Kong Stock Exchange.

The filings, which pave the way for investor roadshows and the IPO book-building process, showed that the company recorded the loss in the first quarter of 2026, marking a stark contrast to a net profit of $395 million during the same period last year.

Mounting Regulatory Headwinds

Adding to the platform's regulatory challenges, the European Union imposed a new 3-euro fee this July on every low-value e-commerce parcel arriving from outside the bloc. According to Brussels, this measure aims to stem the flood of cheap shipments from platforms like SHEIN and Temu, in a bid to curb unfair competition stemming from China.

Despite publishing its preliminary financials, the Singapore-headquartered, Chinese-founded company did not disclose specific details regarding the size of the offering, the target price range for its shares, the exact listing timeline, or the total amount of capital it aims to raise from the public market debut.