Shein slumps to loss as Trump tariff hits progress

Fast fashion firm Shein could raise prices after slumping to a loss.

The group says it is “pursuing a wide range of options” following the impact of US president Donald Trump’s move to scrap an import duty exemption on small packages.

Bosses say the operator is assessing rises across the US and Europe “to offset a portion of the increased costs”.

The update came after the group reported bottom-line net losses of £74 million for the three months to the end of March against profits of £296 million a year earlier.

Sales edged 1.1 per cent higher to £6.78 billion.

The group – which recently announced its decision to list its long-planned initial public offering in Hong Kong – said its first quarter loss was largely down to a £246 million hit from an accounting change for special investor shares.

But the figures laid bare the impact of Mr Trump’s trade war on the group.

The US President previously removed a so-called “de minimis” tariff exemption on small packages, which Shein had previously used to ship garments from China directly to customers.

Earlier this month, the EU also made the same move by imposing a £2.56 duty on small parcels imported from outside the trading bloc, which Shein said may have a “material adverse effect on our business, financial condition and results of operations”.

The company added: “The removal of the US de minimis exemption has had an adverse impact on our sales in the US and the overall growth of net revenues.”

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