Last year, the fashion platform Shein generated sales of 7.68 billion euros in Europe. Compared to the previous year, this was an increase of 68 percent. Its profitability also increased significantly.
Fast fashion platform Shein is one of the Asian e-commerce platforms that is growing rapidly in Europe. Earlier this week, for example, Shein made the list of the 10 most popular online stores in Switzerland.
Profitability doubled
It has now shared its financial statements for the year 2023. In addition to a significant increase in revenue, the company has also increased profitability. Shein’s profit after tax reached 99.5 million euros. In 2022, it was still 45.8 million euros. In addition, gross profit increased from 172 million euros in 2022 to 314 million euros last year.
Shein was valued at $66 billion in 2023
In last year’s funding round, the platform was valued at $66 billion. The company has been planning an IPO in London for some time. These new financial statements could indicate that an IPO can be expected soon.
Growth rate for next year
However, other recent research has shown that the platform’s growth rate is expected to decline this year. This is likely due to complaints about the market from environmental groups and governments.
Earlier this year, the European Union asked Shein and Temu about their services to European shoppers. The European Commission has now launched a formal investigation into Temu. It is unclear whether such proceedings will also be initiated in Shein.