Shein reports record profits as IPO rumours heighten

Fast fashion giant Shein has seen its highest profit ever during the first half of 2023, the company is believed to have told investors in an internal memo.

According to the letter from executive vice chairman Donald Tang, obtained by CNBC, the company’s sales volume growth had accelerated alongside improving profits over the period.

Tang wrote: “We recorded the highest first half net profit in the company’s history, compared to a near break-even during the same period in 2022.

“In particular, our continued momentum in the US reinforces our leading position in the market.”

Shein, which targets young Generation Z consumers, operates on a business model that churns out hundreds of new styles daily.

Most recently, the company has been working on building up its marketplace, where third-party vendors are able to access its large customer base.

The concept was also touched upon in Tang’s letter, in which the exec stated that the monthly total value of merchandise sold since the beginning of 2023 had tripled to nearly 100 million dollars in Brazil, where the marketplace had recently launched.

It comes as rumours surrounding a potential IPO registration continue to heighten, despite the firm not yet confirming such speculation.

The company recently secured two billion dollars in financing and achieved a valuation of around 64 billion dollars, according to the Wall Street Journal, which would see it become the largest Chinese company listed overseas.