Shein returns to profit in second quarter, but warns of uncertain second half

Fast-fashion ​platform Shein returned to profit ​in the second ‌quarter and ​made $11.08 billion in sales, but warned about an uncertain second half as ‌it unveiled its first results as a public company on Monday.

An increase in total orders fulfilled supported a more than 20% ‌sequential jump in Shein's second-quarter net revenue, although the Iran ‌conflict continued to impact its Middle East operations. The Singapore-headquartered online retailer posted a net income of $2.40 billion for the quarter ended June 30, ⁠compared with ​a net loss ⁠of $99 million in the previous quarter.

Shein said its Europe sales decreased ⁠by nearly 14% to $3,770 million in the second quarter, ​reflecting weaker volumes due to higher prices and lower online ⁠advertising spending in anticipation of the European Union imposing fees on low-value e-commerce ⁠parcels ​from July 1. The company's shares had closed 0.5% higher at HK$35.28 before the results on Monday.

Since its ⁠September 1 debut in Hong Kong, Shein's shares have dropped 27.3% from ⁠the ⁠offer price of HK$48.56 apiece.