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Shein has announced a twenty percent increase in worldwide sales to $37bn however profits declined as the fast-fashion retailer faced increased expenses, even before experiencing the effect of latest changes to American tax laws.

Its Singapore-based parent firm of the rapidly growing retailer said pre-tax profits had decreased by thirteen percent to $1.5 billion last year from $1.3bn in 2023 following an rise in promotional and sales expenses, as per new accounts.

The company is thought to be trying to go public on the Hong Kong stock exchange after efforts to list in the United States and United Kingdom for an estimated £50bn market value went awry.

The China-founded online seller warned that changes to US tariff policies since this past April and their “frequent evolution” had heightened the level of unpredictability in the world economy”.

The company cautioned: “Continuing changes of trade policies brings complications for companies that may impact the company’s future financial condition and operations.”

Shein, which makes its revenues from selling goods and from commissions on marketplace sellers, is thought to have suffered a big hit to business in the United States this year after the previous US government eliminated a exemption that permitted goods valued under $800 to be imported and sent directly to shoppers without specific inspections and tariffs.

This import rule, which had been in place since 1938, was intended to encourage expansion for importers of low-value items, latterly covering online selling platforms. Nevertheless, the rule had been criticised for enabling the fast expansion of cheap imports from Chinese suppliers via online marketplaces.

Corporate tax paid by the group remained steady at about $188 million, although that covered $6.1m deferred and adjusted tax relating to previous periods.

Shein’s UK arm has been accused of moving the “majority of earnings” to its parent company in Singapore to cut its UK tax obligations.

Shein paid £9.6 million in corporation tax in the United Kingdom despite generating £2bn in revenue last year.

A tax transparency advocate commented: “The situation remains that the company aggressively avoids tax, enabled by a network of companies in Singapore, the BVI and the Caymans.

“The move|“Relocating} of its main office to Singapore has seen earnings taxed at 5%-8% over the recent period, with incentives for moving assisting them by $74.4 million in Singapore in 2024 alone.”

The company paid no dividend in 2024 after a $484.5m payout in 2023.

Shein responded: “Allegations that Shein is evading taxation is completely incorrect. Like any other international company, the company pays required duties, including, but not restricted to, VAT, company tax, and labour taxes, as mandated, and operates in compliance with the applicable regulations and rules of every market where we operate.”