# Shein cautions over uncertain backdrop after European sales slide

By Susannah Streeter — 2026-09-29

Responding to the news that fast fashion giant Shein has said it expects uncertainty to continue through the second half of this year in the face of pressure from tariffs and volatile logistics costs, Susannah Streeter, chief investment strategist at Wealth Club, said: “Shein has taken another stumble on the global retail catwalk, with its share price falling to a record low.

“The company reported a 53% decline in first-half operating profit, as rising costs and weaker demand weighed on its first results since it listed in Hong Kong. The formula that propelled the extraordinary rise of the fast-fashion giant is coming under increasing strain. While its low-cost model used to shine in a world hooked on disposable style and cheap distribution costs, it’s been battered by changing fashion tastes and the ramping up of freight and import costs. It reported net revenue growth of just 1% for the first half of 2026, while the slowdown in profitability accelerated during the second quarter. Shein is losing its shine as pressure intensifies on many parts of the business.

“The US has ended the de minimis exemption that allowed low-value parcels to enter without customs duties, and the EU has already introduced a temporary €3 customs duty on low-value parcels. Given that its models have been built around shipping vast numbers of inexpensive individual packages directly to consumers, adding costs at the border weakens the economics underpinning the whole proposition. Ultra-fast fashion no longer has the same pulling power with consumers. The resale market has expanded dramatically over the past decade, giving shoppers access to better-known and often more expensive brands at much lower prices, while concerns about the environmental and social impact of disposable clothing have also become harder for the industry to ignore.”

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