Shein IPO – how to trade Shein shares

Learn about Shein and its upcoming initial public offering (IPO), with its potential price drivers, and how to trade the stock market via CFDs.

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When is the Shein IPO date?

As of 27 February 2025, Shein has not officially announced a date for its initial public offering (IPO).

Initially, Shein had reportedly aimed to go public on the London Stock Exchange (LSE) in the first quarter of 2025. However, on 14 February 2025, it was reported that Shein may postpone its IPO to the second half of 2025.

Traders interested in the fast fashion and e-commerce sectors might consider monitoring publicly listed companies such as ASOS, Boohoo, and Zalando, which operate in similar markets to Shein, and could provide alternative investment opportunities.

Shein's IPO plans may change as regulations and market conditions evolve.

Why did Shein delay its IPO?

As of 27 February 2025, Shein has not officially announced its IPO or any delays. However, analysts at RBC Capital suggest that recent changes in US trade policy have influenced Shein’s decision to hold off on going public.

On 1 February 2025, US president Trump announced the termination of the ‘de minimis’ rule, which previously allowed imports under $800 to enter the US duty-free. A 10% tariff on Chinese goods was also introduced, significantly impacting Shein’s pricing strategy and profitability in its largest market.

Meanwhile, the Financial Times (23 February 2025) reported that Shein’s net profit fell by 40% in 2024 to around $1bn, despite a 19% rise in sales to $38bn. Increased competition from Temu and rising operational costs have squeezed margins, leading investors to push for a revised IPO valuation – potentially as low as $30bn, down from previous estimates of $66 bn.

What is Shein?

Shein is a global fast-fashion e-commerce giant, founded in 2008 by Chris Xu in Nanjing, China. Now headquartered in Singapore, it operates a direct-to-consumer (DTC) model, selling clothing, accessories, and home goods in over 150 countries – without permanent physical stores, relying instead on pop-up shops.

Shein’s success comes from real-time trend tracking and a just-in-time inventory system, allowing it to produce small batches of new designs and scale up based on demand. This enables ultra-fast production cycles and low prices, outpacing traditional retailers.

The company drives sales through social media, influencer marketing, and its mobile app, competing with ASOS, Boohoo, Alibaba, Temu, and JD.com. However, it faces ongoing scrutiny over labour practices, sustainability, and intellectual property disputes.

Key milestones in Shein’s history

• 2008Founded by Chris Xu as a wedding dress and womenswear retailer.
• 2012Rebranded as Shein and shifted towards selling fast-fashion clothing globally.
• 2015Adopted a data-driven, on-demand production model, allowing for rapid trend adaptation.
• 2018Expanded significantly into the US and European markets, growing its international footprint.
• 2020Surpassed Zara and H&M in app downloads, becoming the world’s largest online-only fashion retailer.
• 2022Valued at $100bn, briefly making it the world’s most valuable private fashion retailer.
• 2024-2025Faced increasing regulatory scrutiny and ethical concerns while preparing for an IPO.

Shein’s valuation history

Shein has experienced dramatic shifts in valuation, reflecting its rapid rise as a dominant force in fast fashion and the challenges of sustaining growth in an evolving market. From its early billion-dollar milestones to a peak valuation surpassing $100 billion, Shein's worth has fluctuated due to investor sentiment, regulatory scrutiny, and shifting economic conditions. Below is a timeline of Shein’s valuation changes over recent years.

How does Shein make money?

Shein makes money as a fast-fashion e-commerce platform, relying on a direct-to-consumer (DTC) model with no physical stores. Unlike traditional fashion retailers, it uses an ultra-fast production cycle, creating and launching new designs within weeks instead of months.

Shein’s revenue comes from several key streams:

What might influence Shein’s live stock price?

Shein’s post-IPO share price – if, and when publicly traded – could be influenced by trade policies, profitability trends, competitive pressures, and broader market sentiment.

Trade tariffs and regulatory risks

Shein’s margins rely on low-cost manufacturing in China, making it vulnerable to trade policies. The US’s planned revocation of the ‘de minimis’ rule in February 2025 could subject its shipments to full duties, raising costs. Higher tariffs on Chinese imports remain under review, which could force Shein to increase prices or absorb costs, pressuring its stock price – similar to Alibaba’s share price decline in 2018–2019 when US-China tariffs tightened.

Revenue and profitability

Earnings reports are a key driver of stock performance. Strong results can boost investor confidence, while weaker-than-expected profits may lead to declines. In 2024, Shein’s net profit fell by 40%, despite a 19% increase in sales to $38bn, due to rising costs and competition from Temu. A shrinking post-IPO profit margin could impact valuation, mirroring ASOS’s 2022 struggles when higher return rates and logistics expenses hit its share price.

Market sentiment towards IPOs

Investor appetite for e-commerce stocks will influence Shein’s IPO success. Strong IPO performances in retail and tech could lift demand, while concerns over profitability and macroeconomic conditions may dampen enthusiasm. JD.com’s share price volatility, driven by shifting consumer demand, could signal potential trends for Shein.

Consumer demand and brand perception

Shein’s stock could be influenced by shifting consumer trends and ESG concerns. Fast fashion giants like H&M and Zara have faced scrutiny over sustainability, prompting investment in resale platforms. Shein has similarly come under pressure for labour practices and environmental impact, particularly in Europe, where regulators are cracking down on fast fashion. If it fails to address these concerns, sales could suffer – especially among younger, socially conscious consumers.

How to trade Shein stocks via CFDs

As and when Shein debuts on the stock market, follow these steps to trade shares:

• Choose a brokerage platformSelect a regulated broker offering Shein shares or CFDs. 
• Set up a trading accountRegister and verify your identity.
• Deposit funds:Add money to your account using your preferred method.
• Monitor stock performanceStay updated on financial reports and industry news.
• Place a tradeBuy or sell shares using market or limit orders. Consider stop-loss orders for risk management.

You can keep your finger on the pulse of the markets with expert insight from our in-house analysts. Check out our news and analysis section for more. 

Learn more about contracts for difference in our CFDs trading guide.

Which stocks can I trade that are similar to Shein?

Shein remains privately held, but reports suggest a London Stock Exchange IPO in late 2025. Traders can gain exposure to fast fashion and e-commerce through these publicly listed companies:

• ASOS – UK-based fast-fashion retailer with a young consumer focus.

• Boohoo  (BOO) – A data-driven fast fashion brand, but on a smaller scale than Shein.

• Zalando (ZAL) – A European online fashion retailer mixing own inventory with a third-party marketplace.

• Temu (PDD) – A budget e-commerce giant competing directly with Shein via aggressive discounting.

• Alibaba (BABA) – Operates AliExpress, offering low-cost fashion, though not solely focused on clothing.

• JD.com (JD) – A Chinese e-commerce leader with a strong logistics network.

Learn more about shares and stock markets in our comprehensive shares trading guide.

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