SHEIN released its first interim results since its listing.

In the first half of 2026, SHEIN's net revenue was $20.134 billion, up 1% year over year; net profit was $2.299 billion, up 111.7% year over year; adjusted net profit was $499 million; total orders rose 6.4% year over year to 549 million. For the twelve months ended June 30, 2026, SHEIN had 291 million active customers, up from 254 million a year earlier.

In the second quarter, net revenue was $11.08 billion, up 0.9% year over year; adjusted net profit was $228 million; orders grew 7.6% year over year to 298 million. Net cash generated from operating activities was $813 million. As of June 30, 2026, SHEIN maintained $15.2 billion in cash reserves.

SHEIN founder Sky Xu said in the report that in the first half of 2026, total orders reached 549 million, up 6.4% year over year. In the second quarter, total orders rose 7.6% year over year, while net revenue rose 0.9% year over year. Revenue growth lagged order growth mainly because the marketplace business continued to account for a larger share; under the marketplace model, the company recognizes service revenue rather than merchandise sales. During the reporting period, the higher share of the marketplace business was a short-term effect of the external operating environment and changes in trade policies. In the long term, first-party operations will remain the core of the business.

The report shows that in the second quarter, by business type, SHEIN's product revenue was $9.676 billion, down 3.4% year over year; service revenue was $1.406 billion, up 44.2% year over year, mainly due to continued growth in the group's marketplace business. Service revenue as a percentage of total net revenue rose from 8.9% to 12.7%.

By region, net revenue from the United States was $2.5 billion, down 6% year over year, mainly affected by US tariffs and the increased share of the marketplace model. Net revenue from Europe was $3.77 billion, down 13.9% year over year, also mainly due to the increased share of the marketplace model, under which the company recognizes service revenue on only part of the product sale price. In addition, given the expected removal of the EU's EUR 150 customs duty exemption for low-value goods on July 1, 2026, SHEIN raised product prices and reduced online advertising spending, leading to lower sales volumes.

Net revenue from other regions was $4.838 billion, up 21.6% year over year, mainly driven by order growth and an expanded customer base, especially in Latin America, partially offset by adverse effects in SHEIN's Middle East market business.SHEIN noted in the report that revenue growth from other regions was enough to offset the revenue declines in the United States and Europe.

In the second quarter of 2026, thanks to continued expansion in apparel subcategories such as swimwear, sleepwear, sportswear, and dresses, SHEIN's own brands MUSERA and Aloruh achieved strong year-over-year growth. Meanwhile, SHEIN's "SHEIN Xcelerator" emerging business, which empowers fashion brands, continued its strong growth momentum. Among its partners, womenswear brand AiiRZ saw second-quarter orders increase by more than 50% year over year, and new partner brands such as KIZN, Baby Phat, and Fashion SZN also set new sales highs.

According to the plan, over the next one to two years, SHEIN will focus on three priorities: price range expansion, quality and compliance, and consumer communication.

Sky Xu said that the external environment is expected to remain uncertain in the second half of 2026, and tariff headwinds and logistics cost fluctuations may persist. Nevertheless, the fourth quarter, which includes the Double 11 promotion, Black Friday, Cyber Monday, and the Christmas season, remains the most important promotional window and is expected to significantly boost order volume.

While continuing to advance cost optimization and efficiency improvement measures, the company remains cautiously optimistic about its adjusted net profit outlook for the second half of 2026. "As a fundamental principle, we focus on long-term value creation. This means that at times we choose to incur short-term costs to strengthen our competitive advantages, but when these trade-offs bring significant cost pressure, we will carefully manage their impact."

Source: E-commerce Pai
Original link: https://www.pai.com.cn/p/01m3nbe8mveck0d9n7yntc9r0m