Shein issues caution as European sales slide

Fast fashion firm Shein has warned of continued uncertainty amid tariff and logistical cost pressures.

The update came as the company revealed a slight uptick in revenues despite a slump in European sales.

Total net revenues lifted by 0.9 per cent to £8.36 billion for the three months to June 30, compared with the same quarter a year earlier.

A 3.4 per cent drop in product sales was offset by a jump in revenues from its service operations, supported by the growth of its online marketplace operation.

In the US, net revenues fell by six per cent for the quarter after being dented by US tariff measures.

Reported revenues in Europe slid by 13.9 per cent to £3.3 billion for the quarter.

The group said this was linked to customers increasingly using its marketplace services, as well as an impact from lower volumes after it “raised prices and lowered online advertising spending” ahead of the removal of the EU’s customs duty exemption on parcels of €150 or less.

The UK Government says it will remove a similar customs duty relief, on packages worth less than £135, in October 2028.

Yangtian Xu, chair and chief executive, said: “We expect the external environment to remain uncertain in the second half of 2026, with tariff headwinds and logistics cost volatility likely to persist.

“That said, the fourth quarter – encompassing 11.11, Black Friday, Cyber Monday, and the Christmas season – remains our most significant promotional window and should drive a meaningful uplift in orders.

“We remain cautiously optimistic on adjusted net income prospects in the second half of 2026.”

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.