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Shein’s Earnings Surges As Initial Public Offering Plans Approach

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Shein’s Earnings Surges As Initial Public Offering Plans Approach

Shein has experienced a substantial increase in profits, exceeding $2 billion (£1.6 billion) as it gears up for its imminent stock market debut in either New York or London.

Insiders have disclosed that the Chinese retailer achieved sales of approximately $45 billion last year, as detailed by the Financial Times.

Despite its founding in 2008, Shein swiftly emerged as one of the most lucrative fashion labels globally, overshadowing popular brands such as H&M, Primark, and Next.

Nevertheless, the Spanish retail powerhouse Inditex, the firm overseeing Zara and Bershka, surpassed Shein with earnings of €6.9 billion (£5.9 billion) last year.

At the onset of the year, data from Globaldata suggested that Shein is poised to outstrip Zara in the UK in the coming years.

The analysis projects that by 2023, Shein’s UK apparel revenue will surpass £1.3 billion, securing a 2.2% slice of the UK’s £60.3 billion clothing sector, while Zara will settle at 2.4%.

In February, Chancellor Jeremy Hunt engaged with Shein’s chairman, Donald Tang, in an attempt to sway the company towards London for its high-profile IPO, amid concerns regarding potential obstacles in the US application process with the SEC.

According to The Times, London presently leads as the prime option among different stock market avenues, which include the US, Singapore, and Hong Kong.

If the London listing progresses, it could signify one of the largest corporate IPOs in the city’s history, with an estimated valuation of up to $90 billion, as outlined by the Guardian.

Commencing operations in 2008, Shein gained prominence by offering budget-friendly clothing and lifestyle items, unveiling over 2,000 fresh designs daily.

During a fundraising round in April 2022, the company attained a valuation of $100 billion, cementing its status as the world’s third most valuable startup.

Image Source: Kaspars Grinvalds / Shutterstock

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