Shares of Shein Global Holdings Ltd. slid 12.1% to a new low on Tuesday, snapping a six‑month rally that had lifted the stock to 15.9 % gains from its IPO price. The dip cut the company’s market cap to $16.8 bn from $26 bn at listing, a 35 % erosion in just a few weeks.
The drop followed the company’s first public earnings, where first‑half operating income fell 53% to ₹5.1 bn, a sharp contraction from ₹12.0 bn in the same period last year. Analysts on the BSE had expected a 32 % decline; the actual plunge was 21 % worse than consensus, underscoring the widening margin squeeze.
Jefferies noted that the 2026–27 profit forecasts may be overly optimistic, citing the EU’s removal of the customs exemption for low‑value parcels in July as a new drag on shipping margins. John Chou of UBS added that adjusted profit in Q2 “likely missed consensus by a wide margin,” hinting that the company may have to revise its guidance downward.
US sales data from Bloomberg Second Measure shows a 10% drop in the three months to late September, a decline that outpaces the broader apparel sector and signals slowing demand. The company has yet to issue a formal Q3 guidance; investors are watching for a possible earnings revision and a strategic shift in its cost‑control program.