Shein looks to double profit to two billion dollars despite tariff headwinds

Chinese fast fashion platform Shein is said to be on track to make two billion dollars in profit for this year, doubling what it made in 2024. The uptick comes despite a challenging landscape driven by US tariffs, which the retailer has worked to mitigate through cost-cutting and price rises.

According to Bloomberg, Shein is forecasting a double-digit profit growth for 2025, increasing on the 1.1 billion dollars it had reported last year. The upswing was accelerated by strong performance in the first quarter, during which time revenues were said to have exceeded 10 billion dollars while profit came above 400 million dollars, the media outlet reported.

Part of the surge in sales was attributed to accelerated consumer spending in the US ahead of President Donald Trump halting the ‘de minimis’ tax exemption on Chinese goods. Shein is also believed to have raised prices in an attempt to pass on the burden of tariffs to consumers, while simultaneously reducing marketing spend.

While financials appear to be stable, elsewhere Shein is facing a slew of other challenges that could impact its wider performance. In France, where Shein has recently opened its first physical store, the government temporarily suspended the operations of Shein’s site after it was revealed that the retailer was selling a sex doll with a childlike appearance. The country has doubled down on targeting Shein today when ministers confirmed it was inspecting 200,000 parcels from the platform at Paris airport to verify product compliance.

Shein is currently attempting to secure investor confidence as it continues to pursue an IPO in China. Its decision to return its attention to the local stock market came after its efforts in the US and UK faced setback due to heightened concern from regulators in the regions.