SHEIN reported its first interim results since listing, showing first-half adjusted net profit fell 55.6% year on year to $499 million. According to Sina Finance, founder Xu Yangtian said he is cautiously optimistic about the outlook for this metric in the second half of 2026.

The fashion and lifestyle online retailer said net revenue for the six months ended June 30 rose 1.0% to $20.134 billion, while net profit increased 111.7% to $2.299 billion. Operating profit fell 52.9% to $493 million.

For the second quarter, net revenue rose 0.9% year on year to $11.082 billion, adjusted net profit dropped 66.6% to $228 million, and adjusted EBIT declined 64.5% to $254 million. SHEIN said the adjusted net profit margin was 2.1% in the second quarter of 2026, compared with 6.2% in the same period of 2025.

The company said the margin change was mainly driven by sharply higher oil and freight costs caused by geopolitical tensions in the Middle East. It also said it had maintained $15.2 billion in cash reserves as of June 30, 2026.

Xu said the global consumer environment remained challenging in the first half of 2026, with macroeconomic uncertainty, geopolitical complexity, and trade policy changes weighing on demand. He added that the company expects uncertainty, tariff headwinds, and logistics cost volatility to continue in the second half of 2026.