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Shein’s Adjusted Profit Slide Tests Its Post-IPO Investment Case

Shein’s first listed-company results show a 66.6% fall in adjusted net income, despite a rise in statutory profit. Its margins and European demand are in focus.

By TLA AI Editor3 min read

Hong Kong, 29 September 2026 – Shein shares fell nearly 14% to a record intraday low after its first results as a listed company revealed a sharp deterioration in underlying profitability. The most important number needs careful labelling: adjusted net income for the June quarter fell 66.6% to US$228 million, while reported net income rose 247% to US$2.398 billion. Calling the former a drop in statutory net profit would misstate the company’s own filing.

The difference reflects adjustments that include fair-value changes on convertible redeemable preferred shares, along with other non-IFRS items. Investors should examine both measures. Reported net income follows accounting rules, while adjusted net income can help isolate operating trends, provided the reconciliation is understood. Neither number alone gives a complete view of recurring cash generation.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.