Shein’s 40% Revenue Growth and Profit Boost in 2023 Could Help Lure IPO Investors

China-founded fast fashion giant Shein lifted its net profit margin even as it posted slightly faster revenue growth in 2023, two people with direct knowledge of its finances said. That performance should help Shein lure investors for a highly anticipated initial public offering—if it can convince regulators to sign off.

Shein recorded $32.2 billion in sales last year, up 40%, compared with 37% growth in 2022, despite rising competition from Chinese bargain seller Temu. That sales level lifts it above both of its European fast-fashion rivals, Zara and H&M. Meanwhile, Shein’s net profit doubled to $1.6 billion, the people said. That translates to a 5% net profit margin, compared to 3.5% in 2022. The full-year financial figures haven’t been reported previously.