Last year, fashion platform Shein generated 7.68 billion euros in sales in Europe. This was an increase of 68 percent, compared to a year earlier. Its profitability has also increased significantly.
Fast fashion platform Shein is one of the Asian ecommerce platforms that has been growing rapidly in Europe. Earlier this week, for example, Shein entered the list of the top 10 most popular online stores in Switzerland.
Profitability doubled
Now, it has shared its financial statement for 2023. In addition to a significant increase of its sales, the company also increased its profitability. Shein’s profit after tax reached 99.5 million euros. In 2022, that figure was still at 45.8 million euros. Additionally, gross profit increased from 172 million euros in 2022 to 314 million euros last year.
Shein was valued at 66 billion dollars in 2023
In a financing round last year, the platform was valued at 66 billion dollars. The company has been planning an IPO in London for a while now. These new financial statements could indicate that the IPO can be expected soon.
Growth rates for next year
However, other recent research has indicated that the platform’s growth rates are expected to drop this year. This is likely caused by complaints about the marketplace from environmental groups and governments.
The European Union already inquired Shein and Temu about their services to European shoppers, earlier this year. The European Commission has now started a formal investigation into Temu. It is unclear whether such proceedings will also be started into Shein.
