Monday, December 23, 2024

Shein’s UK Sales Hit $2 Billion Ahead of Possible London Listing

Must read

Shein’s UK sales soared to £1.55 billion ($2 billion) last year ahead of the online fashion retailer’s potential initial public offering in London.

The company, which was founded in China but is now based in Singapore, saw its British revenue rise 38 percent in 2023 from a year earlier, according to a filing last week at UK registry Companies House.

Shein has become one of the world’s most valuable startups thanks to its model of high-volume, ultra-cheap fashion. The e-commerce company is awaiting regulatory approval in China and the UK to proceed with an initial public offering that would boost London’s stock market amid a dearth of listings. The IPO could value Shein at about £50 billion, Bloomberg reported earlier this year.

Shein had been considering a US listing but decided to look elsewhere given the intense scrutiny of the company and its Chinese roots.

Pretax profit in Britain doubled in 2023 to £24.4 million, the Companies House filing shows. It was filed under Shein Distribution UK Limited, the company’s subsidiary in the country that was incorporated in 2021.

Significant milestones in the year included opening its Manchester office and pop-up shops across the UK, including a bus tour, the company said.

The sales surge in 2023 was down to strong customer demand, a Shein spokesperson said in a statement.

By Jennifer Creery

Learn more:

Shein Plans Investor Meetings Ahead of London IPO

Shein is initiating informal discussions with investors for a potential IPO in London, pending regulatory approvals, as the Singapore-based retailer faces scrutiny over its supply chain practices amidst criticism from UK lawmakers and advocacy groups.

Latest article