Shein unveils ambitious sales forecast as it prepares for IPO

Online fashion giant Shein projects its sales will more than double to nearly $60 billion by 2025, despite competition growing and a fall in its valuation.

The company is hoping to convince investors its numbers are solid for it to remain on a course for a blockbuster floatation later this year.

In a “management presentation” recently shown to investors and seen by the Financial Times, the fast fashion group said it was targeting annual revenue of $58.5 billion in 2025, up from $22.7 billion last year.

If the company is right in its estimations, it will exceed the existing combined total sales of H&M and Zara.

Gross merchandise value (GMV) will grow to $80.6 billion in 2025, an increase of 174% from last year.

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The ambitious targets comes as Shein attempts to launch one of the largest-ever listings of Chinese companies in the US this year.

According to the Financial Times, Shein must significantly alter sales patterns to hit its revenue goals, in particular by gaining more repeat customers and beginning to sell more diverse and expensive clothing lines.

Analysts have said this could prove to be a challenge for the brand, which now has its headquarters in Singapore, due to the fact its target audience are younger shoppers who have previously shown little brand loyalty.

The IPO is set to come at a time when global investors are cautiously reassessing the high valuations of tech firms during a wider market downturn.

Shein has said however that “as a private company, we do not comment on market speculation”.

Last month, Shein was in discussions to raise $3 billion at a greatly reduced valuation of $64 billion, despite it being valued at just over $100 billion its latest funding round in April last year.



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