Fast fashion group Shein's profits will be made public in the future whether it lists in London or New York, but for now we'll have to rely on second-hand information.
Shein
This information – about 2023 results – comes from the Financial Times, which cited “a financing document” it had seen and “four people close to the company.” And the headlines? The company more than doubled its profit in 2023.
Last year, the company made more than $2 billion in profits on an online gross merchandise value of around $45 billion. Founded in China but now based in Singapore, the company reported net profits of $700 million in 2022 and $1.1 billion in 2021.
Compared to the world's two largest fashion retailers, H&M's profits in recent financial years were $820 million and Inditex's profits were $5.8 billion from their omnichannel operations.
The news comes as Shein awaits regulatory approval of its share listing. The FT again quoted people familiar with the situation as saying that the China Securities Regulatory Commission and the Cyberspace Administration of China could approve the share sale “in the coming weeks.”
China's perspective is key to business. Although its headquarters are in Singapore, China remains the base for much of its business, employing more than 10,000 people there just over a year ago, compared to just 200 in Singapore.
There is still no news about where the initial public offering (IPO) will take place. New York is Shein's first choice, but London is seen as a backup option given the unfavorable atmosphere for listing Chinese companies in the US.
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