Shein faces 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 in the stock, placing Shein among the worst performers of the day on the Hong Kong market.
The sharp decline is particularly significant as it comes shortly after the company's stock market debut, which took place in September.
At the time of listing, Shein had achieved a valuation of about $26.3 billion. This is considerably lower than the levels reached in previous years during private capital raises, when the group's valuation neared the $100 billion mark.
The profit downturn thus refocuses attention on the ultra-fast fashion giant's ability to maintain high profitability levels as it enters a new chapter in its corporate history, now under the daily scrutiny of financial markets.
(Associated Medias) - All rights reserved