Shein's UK sales surge to $2.8 billion in 2024, boosting profits as IPO looms
Shein does not report global results publicly, but the filing sheds light on its growth in Britain, its third-biggest market after the United States and Germany, as the company works toward an initial public offering in Hong Kong.
Founded in China and headquartered in Singapore, Shein has spent years attempting to list, first in New York and then in London, but faced criticism from US and UK politicians and failed to get approval from China's securities regulator for the offshore IPO at a time of increasing tensions between China and the US.
The global retailer's UK business, Shein Distribution UK Ltd, reported a pretax profit of 38.25 million pounds in 2024, up 56.6% from 24.4 million pounds in 2023.
In the filing, Shein highlighted 2024 milestones, such as a pop-up shop in Liverpool, a Christmas bus tour across 12 UK cities and the opening of two new offices in Kings Cross and Manchester.
Known for deeply discounted pricing, Shein runs constant promotions and offers coupons or rewards that encourage shoppers to keep buying. Shein has taken market share from retailers like ASOS and H&M as surging inflation dented consumers' spending power, driving them to hunt for bargains.
Shein has also broadened its offering beyond fashion — the UK site sells 7.99-pound ($10.84) dresses and 15-pound ($20.36) jeans, as well as everything from toys and craft supplies to storage units.
Shein's business has benefited from customs duty exemptions on low-value e-commerce packages that allow it to send goods directly from factories in China to shoppers' doorsteps largely tariff-free.
But that perk is on its way out, driving Shein's costs — and prices — up, particularly in the U.S., where imports from China are now subject to steep tariffs.
U.S. President Donald Trump's administration has scrapped its 'de minimis' exemption for parcels under $800, and the European Union plans to remove its equivalent duty waiver on e-commerce parcels worth less than 150 euros.
Britain is also reviewing its policy on low-value imports after retailers said it was giving online players like Shein and Temu an unfair advantage.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
5 hours ago
- Express Tribune
Air Canada workers picket airports after flight attendants strike over wages
People hold placards as a strike begins after the union representing Air Canada's 10,000 flight attendants failed to reach an agreement with the airline, at Montreal-Pierre Elliott Trudeau International Airport in Dorval, Quebec, Canada August 16, REUTERS Hundreds of Air Canada employees formed picket lines outside major Canadian airports and business leaders sought government intervention on Saturday, hours after unionized flight attendants walked off the job over a wage contract dispute. The strike, which started just before 1 a.m. EDT (0500 GMT), forced Canada's largest airline to cancel all of its 700 daily flights, affecting more than 100,000 travelers who had to find alternative flights or stay put. The airline said in a statement on Saturday that it has started locking out thousands of flight attendants in response to the strike action. The carrier had offered a 38% increase in total compensation for flight attendants over four years, with a 25% raise in the first year, which the Canadian Union of Public Employees said was insufficient. CUPE, representing more than 10,000 Air Canada flight attendants, confirmed the work stoppage in a social media post. It is the first strike by Air Canada flight attendants since 1985. Wesley Lesosky, president of the Air Canada component of CUPE, said in a press conference in Toronto that, as of Saturday morning, there were no bargaining sessions scheduled between the two sides, which have held on-and-off negotiations for months. Read More: Canada sheds 40,800 jobs as tariffs dent hiring "We are here because Air Canada forces us to work for free for hours and hours every day, and we are here because we are not going to accept it anymore," he said. Outside Toronto Pearson International Airport - the country's busiest - hundreds of cabin crew waved flags, banners and picket signs. Union officials called on members to assemble outside all of the country's major airports, including in Toronto, Montreal, Calgary and Vancouver. Montreal-based Air Canada said the suspended flights included those operated by its budget arm, Air Canada Rouge. The stoppage would affect about 130,000 customers a day, the carrier said in a statement. Flights by Air Canada's regional affiliates - Air Canada Jazz and PAL Airlines - will operate as usual. Wage dispute The dispute between the union and the airline centers on wages. Attendants are currently paid only when their plane is moving. The union is seeking compensation for time spent on the ground between flights and when helping passengers board. A US judge kept his block on President Donald Trump's buyout plan for federal employees in place on Monday. The union has said Air Canada offered to compensate flight attendants for some work that is now unpaid but only at 50% of their hourly rate. A source close to the negotiations told Reuters the union is looking for parity on wages with Canadian leisure carrier Air Transat, where flight attendants approved a contract last year that provided for total compounded increases of 30% over five years, making them the highest paid in the industry in Canada. Air Canada did not confirm if such a proposal had been put forth by the union. "What we're asking for is not unreasonable. It is not a high demand. It is not that far off other competitors such as Air Transat. It is realistic and it is deserved," Lesosky from CUPE said. The impact of a strike will ripple far beyond Canada. Air Canada is the busiest foreign carrier servicing the U.S. by number of scheduled flights.
Express Tribune
18 hours ago
- Express Tribune
Govt rejects lower gas tariff plea
The Commerce Division argued that tariff concession had been offered to those sectors that had a significant share in Pakistan's exports in 2011, whereas the glass industry's annual exports of $15.9 million were negligible. Photo: file The government has decided against granting a concessionary gas tariff to the zero-rated and export-oriented sectors. It made the decision while considering litigation pertaining to tariff reduction for such industries. In a recent meeting of the Economic Coordination Committee (ECC), it was observed that concessionary gas tariffs had already been exhausted in 2023 and considering those tariffs for zero-rated and export-oriented industries at the current stage may open the floodgates to similar cases. The ECC noted the position and directed the Commerce Division to pursue the case expeditiously in consultation with the Attorney General office. The Ministry of Commerce briefed the meeting that in 2019 Ghani Glass filed a writ petition in the Lahore High Court, praying that the concessionary gas/re-gasified liquefied natural gas (RLNG) tariff, fixed at Rs600 per million British thermal units (mmBtu) and granted to the zero-rated/export-oriented sectors, may be extended to the petitioner as well. The Petroleum Division, Oil and Gas Regulatory Authority, Sui Northern Gas Pipelines Limited (SNGPL) and the Federal Board of Revenue (FBR) were listed as respondents in the petition. However, the Ministry of Finance and the Ministry of Commerce were not impleaded as parties in the case until April 7, 2025. The court directed that the Ministry of Finance, in coordination with the Ministry of Commerce and other relevant stakeholders, within 60 days, place the case of Ghani Glass before the ECC for developing a rational policy to ensure that only the export-oriented industries receive all concessions, rather than allowing sector-based classifications that permit non-exporting industries to take benefit unfairly. The ECC was directed to consider, within 60 days, the petitioner's request for the grant of tariff concession in respect of Sui gas/RLNG, with specific reference to discrimination by excluding glass from the export-oriented sectors. The relevant authority was also directed to examine the application of lower tariff to the petitioner from the date of filing the case (ie, 2015) until the period the benefit was extended to the zero-rated/export-oriented industries. The court directed that the ECC should take into consideration the potential of the glass industry to increase its export share and earn maximum foreign exchange. Furthermore, the forum should examine whether it was feasible to charge any export-focused industry higher prices compared to rates prevalent in other countries. The Commerce Division stated that the FBR, vide Statutory Regulatory Order (SRO) 1125(I)/2011, had granted zero-rated sales tax status to major sectors such as textile, carpet, leather goods, sports goods and surgical instruments. In 2018, the Petroleum Division extended the concessionary RLNG tariff of Rs600 per mmBtu to exporters of the same zero-rated sectors. Following the withdrawal of SRO 1125 through the Finance Bill 2019, an administrative gap emerged regarding the continuation of reduced gas tariffs. Consequently, the Ministry of Commerce declared the erstwhile zero-rated sectors as "export-oriented sectors" in December 2019. Accordingly, the tariff concession remained in place until 2023 and after that it was discontinued. The Commerce Division argued that the concession had been offered to those sectors that had a significant share in Pakistan's total exports in 2011, whereas the glass industry's annual exports of $15.9 million at that time were negligible. On the advice of the Ministry of Law and Justice, the Ministry of Commerce filed a Civil Petition for Leave to Appeal on June 12, 2025 in the Supreme Court, challenging the ruling of the Lahore High Court. Keeping that situation in view, the Commerce Division told the ECC that the demand of Ghani Glass for tariff concession was untenable and may not be entertained. It sought the ECC's approval for the proposal. The ECC considered the Ministry of Commerce's summary, "Implementation of Decision of the Lahore High Court in Writ Petition No 61559 of 2019 titled Ghani Glass versus Federation of Pakistan", and noted the position presented therein. It directed that the Ministry of Commerce may approach the Attorney General office.
Express Tribune
18 hours ago
- Express Tribune
Oil and gas output hits 20-year low
Amid renewed hopes of US investment in Pakistan's oil sector, spurred by recent tweets from former US President Donald Trump hinting at greater American involvement in local exploration and implying potential crude supply to India, Pakistan has recorded its weakest oil and gas production in more than two decades. Industry data for fiscal year 2025 (FY25) shows a steep double-digit drop in both crude oil and natural gas output, deepening concerns over energy security and foreign exchange pressures. Analysts warn the downturn, driven by structural imbalances, regulatory measures, and surplus imported LNG, could deepen in the year ahead, adding pressure to the country's foreign exchange reserves and energy security. Pakistan's oil and gas sector recorded its weakest output in more than two decades during fiscal year 2025 (FY25), as surplus regasified liquefied natural gas (RLNG) in the system forced a curtailment of local production. According to a report by Topline Securities, hydrocarbon output fell sharply, with crude oil volumes down 12% year-on-year (YoY) and natural gas output slipping 8% YoY. The downturn accelerated in the final quarter, with oil production dropping 8% quarter-on-quarter (QoQ) and 15% YoY, while gas production contracted by 7% QoQ and 10% YoY, underscoring persistent strain on the sector. The surplus RLNG was driven in part by a policy shift that diverted captive industrial users from natural gas to the national power grid. Compounding the pressure, the government imposed an "off-grid levy" on captive gas consumption at a rate of Rs791 per million British thermal units (mmbtu), pushing the total cost to Rs4,291/mmbtu. This made electricity generation via gas more expensive than grid supply, further discouraging industrial gas use and reducing demand for domestic production. Oil output averaged 62,400 barrels per day (bpd) in FY25, with volumes falling across major fields by between 3% and 46%. Key producers such as Makori East, Nashpa, Maramzai, Pasakhi, and Mardankhel all saw declines. The Tal Block, which accounts for roughly 17% of Pakistan's total oil production, posted a steep 22% YoY decline in the fourth quarter alone. Within the block, production from the Maramzai and Mardankhel fields plunged by 54% and 52% YoY, respectively, highlighting the severity of the downturn. Gas output averaged 2,886 million cubic feet per day (mmcfd) in FY25, with major fields also under pressure. Qadirpur and Nashpa recorded the steepest contractions in the fourth quarter, down 36% and 34% YoY, respectively, largely due to curtailment by the Sui gas companies. Even the Sui field itself, Pakistan's largest gas producer, reported consistent declines, reflecting the sector-wide impact of the RLNG oversupply and shifting demand patterns. The cutback in domestic production has had significant macroeconomic consequences. Topline Securities estimates that the increased reliance on imported fuels, necessitated by the reduced local output, placed an additional strain of more than $1.2 billion on Pakistan's foreign exchange reserves during FY25. Analysts warn that this not only inflates the import bill but also exposes the country to greater vulnerability from global fuel price swings and potential supply disruptions. Looking ahead, the outlook remains challenging. Topline projects that oil production will hover between 58,000-60,000 bpd in FY26, while gas output is expected to remain in the range of 2,750-2,850 mmcfd. Without a reversal of current policies or new investment in exploration and production (E&P), FY26 could mark the third consecutive year of declining hydrocarbon volumes. There is, however, a potential opening for recovery. The government is set to renegotiate its long-term RLNG supply agreement with Qatar in March 2026. Industry observers believe that more flexible contract terms could give domestic E&P companies the space to ramp up production, provided field maintenance and capital expenditure remain on track. Balancing imported LNG supply with the need to sustain indigenous production, they note, will be critical to ensuring Pakistan's energy security and protecting its fragile foreign exchange position.
