Shein is stitching up a blockbuster IPO, but a fast-fashion slowdown could unravel the plan

Insta-worthy fit… for less than $10. After years of explosive growth, ultra-fast-fashion titan Shein is laying out lofty sales goals in preparation for a potential IPO this year. Shein became America’s largest fast-fashion brand thanks to its online offering of endless trendy clothes at super-low prices (think: 6K new styles listed each day). Now Shein could become the largest Chinese company ever to list in the US — its #1 market.

• New fit: In an investor presentation last week, Shein said it was aiming to double its annual sales to nearly $60B by 2025. FYI: that’s more than H&M and Zara’s yearly sales combined.
• Loose thread: Analysts say Shein’s goal could be a stretch, since it would need to get more repeat customers and sell pricier pieces (think: $30 blouse vs. $3 tank).

From A to Gen Z… Shein became a go-to for young adults thanks to viral TikTok hauls and influencer endorsements. During the pandemic, its valuation soared from $10B to $100B in two years (but recently dropped to $65B). The novelty of endless cheap clothing scrolling is starting to wear off. Shein’s sales have fallen for six out of the past seven months, and last year it posted its first annual loss since the pandemic.

• Interest down: Online searches for Shein and other fast-fashion faves like Pretty Little Thing and Fashion Nova have tumbled since last fall.
• Competition up: This month Shein’s China-owned rival, Temu, became the most downloaded app in the US (topping Walmart and Amazon) after its Super Bowl ad.