Despite facing new US tariffs that many expected would hurt its business, fast-fashion giant Shein is celebrating a major financial win. The Chinese-owned retailer announced it expects to earn $2 billion in profit during 2025, nearly doubling its $1.1 billion earnings from 2024. This impressive growth shows the company has successfully navigated trade challenges that might have sunk other businesses.
Despite tariff headwinds, Shein’s profits are set to nearly double from $1.1 billion to $2 billion in 2025.
The profit surge comes alongside strong revenue performance. Shein pulled in nearly $10 billion during the first quarter of 2025 alone, suggesting the company is on track for another banner year. In 2024, total revenue reached $38 billion, marking a solid 23% increase from the previous year.
Company executives forecast mid-teen percentage sales growth will continue throughout 2025.
The US government recently dismantled tax exemptions for small packages, which previously helped Shein keep prices low for American shoppers. Rather than absorb these extra costs, Shein simply passed them along to customers through higher prices. Surprisingly, this strategy worked better than critics predicted.
Smart cost management helped offset potential problems from the tariff changes. Shein reduced its massive advertising spending while maintaining stable shipping costs through its own logistics network. The company implemented electronic data interchange to accelerate its procurement-to-delivery cycles and reduce operational costs by over 35%. The company also expanded sourcing operations into Vietnam, reducing future dependence on Chinese manufacturing and potential duty exposure.
Revenue growth has been driven by enthusiastic US customers who rushed to make purchases before tariff changes took effect. Shein’s popularity among Generation Z shoppers in America and the United Kingdom remains remarkably strong.
The company has also expanded beyond clothing into home goods and third-party marketplace products, boosting average order values. France opened Shein’s first physical store in Paris, marking a significant expansion into brick-and-mortar retail. The company operates using AI for rapid trend identification and produces items in small initial batches to test market demand before scaling production.
This positive financial outlook serves another important purpose for Shein. The company continues planning for a public stock offering, though timing remains uncertain pending approval from Chinese securities regulators. Strong profit forecasts help maintain investor confidence during the lengthy IPO process.
Currently valued at $45 billion, Shein has raised over $4 billion from major investors including General Atlantic and Sequoia Capital China. The company’s ability to thrive despite trade headwinds demonstrates the resilience of its business model.
