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Annual revenues at the UK arm of fast-fashion group Shein surpassed £1.5bn last year while profit doubled as shoppers continue to scoop up its low-cost products.
The UK operation, which sells women’s jumpers for £7.25 and dresses for £6.57, posted revenue of £1.55bn for the 12 months to December 31, up from £1.12bn over a 16-month period previously, according to the second set of accounts for Shein Distribution UK Limited, which was incorporated in 2021.
Meanwhile, profit before tax doubled to £24.4mn, while its tax bill went up to £5.7mn from almost £2.34mn in the same period.
The company cited pop-up shops across the country as “significant milestones” in the year, as well as the opening of a Manchester office. It had 33 employees during the period, compared with 14 previously.
Another Shein UK division was first incorporated in 2014, and has since been dissolved, according to official filings. Sales took off in earnest at the group globally since the boom in online shopping during the pandemic.
China-founded Shein, valued at $66bn during its latest funding round, has disrupted the garments industry with its model of shipping cheap clothes directly from factories in China to western shoppers based on the latest fashion trends. However, it has faced allegations of forced labour in its cotton supply chain and of having lax environmental standards, both of which it denies.
Companies such as Shein and rival Temu are able to charge low prices partly by shipping items in small packages direct to consumers, thereby avoiding customs duties. In September, the US moved to close the trade loophole.
The group, now based in Singapore, launched its plan for an initial public offering at the end of last year, at first targeting New York but shifting to London after being rebuffed by US regulators. It is still awaiting the necessary regulatory approvals in China and the UK to move forward with a London listing.
Last week Sky Xu, its reclusive billionaire founder, travelled to the UK to meet investors in anticipation of a possible IPO, and will travel to the US for meetings, the Financial Times reported.
Shein said the uplift in revenue and profit last year was “driven by strong consumer demand and loyalty across the UK”. It added that it continued to invest in its “on-demand platform to provide more choice and better experience for customers”.