Profit and Market Valuation Halved: Will Shein Postpone I.P.O.?
Shein might postpone its initial public offering (I.P.O.) on the London Stock Exchange, originally scheduled for April 2025, to the latter half of the year. The growth forecast for 2024 has fallen short of expectations, indicating a shift in the company’s timeline.
Financial Performance in 2024
- Revenue reached US$38 billion, a 19% increase, but significantly below the anticipated US$45 billion.
- Net profit dropped from US$2 billion to US$1 billion, half of what was expected.
- The management’s initial forecast for net profit was US$4.8 billion, which was not met.
"Net profit halved, dropping from US$2 billion to US$1 billion in 2024, far below the US$4.8 billion initially forecasted by management."
Additional Context
In 2023, Shein’s Gross Merchandise Volume (GMV) was US$45 billion.
"As a reminder, Shein’s GMV stood at US$45 billion in 2023."
Author’s Note
Shein’s delayed I.P.O. and reduced financial outlook highlight the challenges in maintaining rapid growth amid shifting market conditions.