Shein reported a quarterly loss of $99 million, compared with a profit of $395 million a year earlier, after sales slowed following the United States' removal of the de minimis tariff exemption on small packages. The company, headquartered in Singapore and founded in China, said higher import duties, increased costs related to the Iran conflict, and delivery delays in some markets contributed to the decline.

The first‑quarter results also reflected a $328 million paper loss from an accounting change for special investor shares that can be converted to ordinary stock prior to its planned initial public offering in Hong Kong. Shein indicated it is exploring price increases in the United States to offset part of the added costs.

The White House said the former de minimis exemption had been used to evade tariffs and funnel synthetic opioids into the United States. Shein noted that the removal of the exemption negatively impacted U.S. sales and overall net revenue growth, a development the company attributes to the trading bloc's effort to curb what it describes as unfair competition from China.

Shein's active customer base rose to 281 million, a more than 16 percent increase year‑over‑year, with more than one billion orders placed. The firm received approval from the China Securities Regulatory Commission for a Hong Kong share sale on 10 July and expects the listing to occur later this year.