The Singapore-based e-commerce giant is also forecasting mid-teen percentage growth in sales, according to people familiar with the matter, who asked not to be identified as the targets are private.
The US$2 billion net income guidance for this year suggests profit could nearly double from the US$1.1 billion it reported last year. It builds on a strong first quarter when net income topped US$400 million and revenue jumped to nearly US$10 billion as US consumers rushed to buy its products before Trump dismantled the “de minimis” tax exemption for small parcels.
The upbeat full-year outlook – issued in late August – comes as Shein works to retain investor confidence ahead of a long-delayed initial public offering (IPO), which remains clouded by uncertainty.
The forecast is surprisingly rosy, given its business was expected to take a hit after the “de minimis” loophole was closed. It is unclear if one-off factors contributed to the number.
But it appears that the company’s price increases have passed the tariff burden to shoppers, protecting its bottom line. Pulling back on aggressive advertising spending, a strategy made possible by rival Temu’s reticence in the US market for much of the summer, also boosted margins, one of the people said.
