Shein reported a $99 million first-quarter loss as tariffs on small-parcel imports hit sales, despite modest revenue growth and ongoing progress toward a Hong Kong IPO. The company cited the removal of the US de minimis exemption, and the EU’s analogous policy, as key factors increasing costs and pressuring growth across major markets. A $328 million fair-value charge on convertible redeemable preferred shares also weighed on the quarter’s results. Shein reiterated that it is pursuing a range of options, including potential price adjustments in the US, to offset higher duties and logistics costs. The firm has won CSRC approval for its Hong Kong listing, with investors watching closely as it seeks a multi-billion-dollar valuation amid heightened regulatory scrutiny and regulatory changes in global markets. Analysts have suggested a valuation target substantially lower than prior estimates as the company navigates slower growth and rising costs ahead of the IPO.