Fast-fashion giant Shein reportedly more than doubled its profits in 2023 — to a record-high of more than $2 billion — as the China-owned company awaits approval to go public in the US.
Last year’s profits surged from $700 million in 2022, which had fallen from $1.1 billion in 2021, per financial documents obtained by the Financial Times.
Shein’s blockbuster year also included raking in roughly $45 billion in gross merchandise value, or total value of sold goods on its website, four people close to the company told FT.
The e-commerce giant’s record earnings come at a time when it’s gearing up for an IPO — awaiting regulators in Beijing and Washington to approve its listing, which is expected to be the largest of 2024.
Shein was founded in China, but moved its headquarters to Singapore in 2022. It runs most of its online-only business from the Chinese city of Nanjing and therefore has sought approval from local regulators before making its debut.
A funding round in 2022 valued the company at more than $60 billion.
The company — popular among Gen X and Gen Z for offering clothing as little as $2 — is reportedly seeking to go public with a valuation between $80 billion and $90 billion, people familiar with the matter said in 2022, according to Fortune.
Private traders in late 2023, however, valued the company at about $50 billion, the outlet reported.
The most valuable China-founded enterprise to go public in the US so far is e-commerce giant Alibaba Group, which debuted in 2014 at a valuation of $231 billion.
In the walkup to its potential US debut, Shein has been lobbying in Washington amid growing criticism of the company’s delivery model, which sees its Chinese goods being shipped direct to American shoppers to avoid import taxes, according to FT.
Within nine months along last year, Shein spent nearly $2 million on lobbying, public records show, per FT.
Since the company also maintains its substantial presence in China, lawmakers have also urged regulators to proceed with caution — echoing arguments against TikTok on Capitol Hill, where lawmakers have expressed concern over the app’s threat to national security.
Sen. Marco Rubio (R-Fla.) in February urged US Securities and Exchange Commission head Gary Gensler in an open letter to “require extraordinary disclosures from Shein regarding its structure, interactions with the Chinese government and Chinese Communist party,” FT reported.
There have also been numerous complaints about working conditions at the company — which posts more than 6,000 cheap, new products on its website daily — especially after a series of TikTok videos showing clothing tags stitched with “help me” and “need your help” went viral.
Additionally, Shein’s 2021 Sustainability and Social Impact Report cited “frequent violations” throughout the supply chain after 700 suppliers were audited.
Of those surveyed, the most (27%) noted violations to the company’s “fire and emergency preparedness” and “working hours” (14%). Meanwhile, 8% cited errors in “general working environment” and less than 1% even noted “underage labor.”
At the end of 2022, Shein had 10,382 employees in mainland China working for more than a dozen subsidiaries and handling everything from logistics to writing code, according to FT, citing Chinese data provider Tianyancha.
LinkedIn, meanwhile, touts that the company has just about 200 employees in Singapore.
If a US public offering doesn’t work out, Shein is eyeing London as a back-up option, a person close to the company told FT.
Representatives for Shein did not immediately respond to The Post’s request for comment.
