Shein's shares fell as much as 14% on Sept. 29 after the fast-fashion retailer reported a 67% decline in quarterly adjusted profit in its first post-IPO results. Second-quarter adjusted net profit was $228 million, while the adjusted margin narrowed to 2.1% from 6.2% in 2025 as Middle East conflict pushed up jet-fuel and freight costs for its air-shipped clothing business. Sales in Europe dropped sharply after Shein raised prices and reduced online advertising ahead of a €3 European Union fee on low-value e-commerce parcels that took effect July 1. The stock was down 10.9% at HK$31.44 at the midday break, leaving Shein with a market value of about $17 billion, compared with roughly $26 billion when it listed in Hong Kong on Sept. 1. Chief executive officer and chairman Yangtian Xu said Shein plans to increase European inventory and expand into higher-priced clothing to improve profitability.