Fast-fashion giant Shein is experiencing stalled growth in the United States and Europe following the removal of customs duty exemptions it previously enjoyed. Between 2024 and 2025, its U.S. revenue declined by more than 3%, with a 14% plunge in the first quarter, while companywide profitability fell by 39%. The European Union, which accounted for 35% of its 2025 revenue, ended its own de minimis exemption in July, exposing Shein to flat-rate fees of 3 euros per product category. In response, the company is preparing a Hong Kong initial public offering and accelerating its shift toward services, with revenue from this segment growing nearly 40% in 2025, driven by its supply chain solutions offered to third-party brands.
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