Shein is under pressure on the Hong Kong Stock Exchange. The online fashion group's shares fell by 11.7% after the release of quarterly results, which showed a significant drop in profitability.
The company's adjusted net profit decreased by 67% compared to the same period last year. This figure triggered a sell-off of the stock, placing Shein among the worst performers of the day on the Hong Kong market.
This sharp decline is particularly notable as it comes shortly after the company's stock market debut in September.
At the time of its listing, Shein was valued at approximately $26.3 billion. This is significantly lower than the levels reached in previous years during private funding rounds, when the group's valuation neared $100 billion.
The drop in profits thus raises questions about the ultra-fast fashion giant's ability to maintain high profitability as it enters a new chapter in its corporate history, now under the daily scrutiny of financial markets.
(Associated Medias) - All rights reserved