Shein has witnessed a significant surge in profits, surpassing $2 billion (£1.6 billion) as it prepares for its upcoming stock market debut in New York or London.
Reports from sources close to the company revealed that the Chinese retailer generated sales of about $45 billion last year, Financial Times shared.
Despite only being established in 2008, Shein has quickly become one of the most profitable fashion brands globally, outperforming popular names like H&M, Primark, and Next.
However, Spanish retail giant Inditex, the company behind Zara and Bershka, still outpaced Shein with earnings of €6.9 billion (£5.9 billion) last year.
At the beginning of the year, data from Globaldata indicated that Shein is expected to surpass Zara in the UK within the next few years.
The analysis suggests that in 2023, Shein’s UK clothing sales exceeded £1.3 billion, holding a 2.2% share of the UK’s £60.3 billion clothing market, while Zara stood at 2.4%.
In February, Chancellor Jeremy Hunt met with Shein’s executive chair, Donald Tang, in an effort to persuade the company to consider London for its high-profile IPO, amid concerns over potential setbacks in the US application process with the SEC.
According to The Times, London is currently the top contender among various stock market options, including the US, Singapore, and Hong Kong.
If the London listing proceeds, it could mark one of the largest corporate IPOs in the city’s history, with an estimated value of up to $90 billion as reported by the Guardian.
Established in 2008, Shein gained prominence by offering affordable clothing and lifestyle products, introducing over 2,000 new styles daily.
During a fundraising round in April 2022, the company achieved a valuation of $100 billion, positioning it as the world’s third most valuable startup.
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