Shein Targets $90 Billion Valuation in Upcoming IPO
Shein's aiming for an $80-90 billion valuation in their U.S. IPO, according to Bloomberg. That's up from $64 billion earlier this year, but still below their April 2022 peak of $100 billion. I'm skeptical they'll hit that number.
The financials look decent on paper. They're expecting $2.5 billion in net income this year, which is a huge jump from the $137 million they reported back in 2019. That's real growth, I'll give them that.
Shein was the most downloaded shopping app worldwide in 2022 - 229 million new downloads across App Store and Google Play combined. That's impressive reach, but downloads don't equal sustainable value.
Here's my issue: $90 billion is a stretch. Fast fashion is getting hammered by sustainability concerns, labor practice scrutiny, and increasing competition. Shein's growth has been explosive, but valuing them higher than many established retailers assumes that trajectory continues indefinitely. I don't buy it.