Shein’s UK Sales Top US$2.7 Billion, Up 32% Ahead of IPO

Shein’s UK operations posted £2.05 billion (US$2.7 billion) in sales for 2024, up 32.3% from the previous year, according to a company filing Friday. The UK ranks as Shein’s third-largest market, after the United States and Germany, as the fast-fashion retailer prepares for a Hong Kong IPO.

Shein Distribution UK Ltd reported a pretax profit of £38.25 million in 2024, a 56.6% increase from £24.4 million in 2023. Highlights included a Liverpool pop-up store, a Christmas bus tour across 12 cities, and the opening of new offices.

Founded in China and now headquartered in Singapore, Shein has long sought a public listing, initially targeting New York and London. Regulatory and political hurdles led the company to shift focus to Hong Kong amid rising US-China tensions.

Beyond apparel, Shein now sells toys, craft supplies, and home storage. Its low prices and frequent promotions have helped it capture market share from ASOS and H&M, particularly as inflation affects consumers.

The company’s model has benefited from customs duty exemptions on low-value e-commerce packages, allowing mostly tariff-free shipping from China. These exemptions are being phased out in major markets: the United States ended its “de minimis” rule for parcels under US$800, the EU will remove its €150 threshold, and the UK is reviewing its policy after complaints that it advantages online retailers like Shein and Temu.