Chinese fast-fashion giant Shein increased revenue marginally in the second quarter, while operating profit fell sharply as higher oil prices and freight costs pressured profitability.
Revenue rose 0.9 percent to USD 11,082 million (10,988). The number of orders increased 7.6 percent to 298 million (277). Revenue growth was held back by a larger share of marketplace transactions, where the company reports service revenue instead of the full product value.
Operating profit was USD 235 million (698), a decrease of 66.3 percent. The operating margin was 2.1 percent (6.4).
Adjusted EBIT amounted to USD 254 million (715), a decrease of 64.5 percent. The adjusted EBIT margin was 2.3 percent (6.5).
Net profit increased 247 percent to USD 2,398 million (691). The result was positively affected by a fair value change of USD 2,189 million related to convertible redeemable preference shares.
In the first quarter of this year, net profit was -USD 99 million.
Cash and cash equivalents amounted to USD 3,043 million (4,129) at the end of the period.
CEO Yangtian Xu says that underlying profitability was pressured by sharply rising oil prices and freight costs as a result of geopolitical tensions in the Middle East. Shein chose to absorb the cost increases rather than pass them on to consumers.
The company expects continued uncertainty in the second half of the year, with headwinds from tariffs and volatile logistics costs. At the same time, Shein is cautiously optimistic about the outlook for adjusted net profit in the second half of the year.
Key figures, USD millionQ2 2026Q2 2025Year-over-year changeRevenue11 08210 988+0,9%Operating profit235698-66,3%Operating margin2,1%6,4%-4,3 percentage pointsAdjusted EBIT254715-64,5%Adjusted EBIT margin2,3%6,5%-4,2 percentage pointsNet profit2 398691+247,0%Cash and cash equivalents3 0434 129-26,3%
