Shein’s European sales decline contrasts with modest overall revenue growth

Verified facts: Shein reported total net revenue of 11.08 billion US dollars for the three months ended June 30, up 0.9% year on year. Product sales fell 3.4%, while revenue from service operations increased. Net revenue in the US declined 6%, an improvement on the 14.3% decline reported for the first quarter. European revenue fell 13.9% to 4.38 billion US dollars. The report attributes Shein’s explanation for the European decline to greater use of marketplace services and lower volumes after the company raised prices and reduced online advertising spending ahead of the removal of the EU customs-duty exemption on parcels worth 150 euros or less. The EU removed that exemption at the start of July. The United States had taken a similar measure, and the UK government has said it will remove comparable relief for packages worth less than 135 pounds in October 2028.

Interpretation: The figures indicate a mixed performance rather than broad-based growth. Shein’s modest overall revenue increase was supported by service operations and marketplace activity, but its core product sales and two major regional markets weakened. The smaller US decline may be consistent with an improving trend, but the available evidence does not establish a sustained recovery. The European result suggests that pricing and policy changes were associated with lower sales volumes, although the supplied report does not quantify the separate effect of each factor.

Shein’s outlook is cautious. Chairman and chief executive Yangtian Xu said the company expects uncertainty to continue through the second half of 2026 because of tariff pressures and volatile logistics costs. He also identified the fourth quarter, including 11.11, Black Friday, Cyber Monday and Christmas, as the company’s most important promotional period and said it should increase orders. These are management expectations, not confirmed outcomes.