The European Union recently introduced a €3 fee on low-value e-commerce imports, creating additional headwinds for Shein across European markets, which accounted for approximately one-third of its total 2025 revenue.
"Although it remains too early to fully assess, it is possible that trends in the EU could be generally in line with or exceed the impact observed in the U.
S. after the removal of the U.
S. de minimis exemption," Shein stated in the document.
The company also highlighted geopolitical factors impacting supply logistics and Middle Eastern demand during the early months of the year.
Analysts Weigh In on Shein's Prospects
Market analyst Juozas Kaziukenas noted that structural changes in foreign trade policies have made historical expansion trajectories difficult to maintain in Western markets.
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"There's no proposed solution to the declining growth," said Juozas Kaziukenas, an e-commerce industry analyst.
Evaluating overall geographic prospects, Kaziukenas emphasized a shift away from traditional core regions.
"Shein's short-term future is going to happen in 'Rest of the World' countries, not Europe or the U.
S. ," he said.
Financial institutions on the Hong Kong Stock Exchange are closely evaluating the company's valuation targets following private funding declines from $98.2 billion in 2022 to $64 billion in 2024.
"Institutional investors on the HKEX will zero in on the 2.9 per cent operating margin," said Winston Ma, executive director of the Global Public Investment Funds Forum and former managing director at the China Investment Corporation.
