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Moves by authorities in the European Union and elsewhere to end tax breaks for low-value parcels threaten Shein’s profitability and risk denting the fastfashion retailer’s long-term attractiveness ahead of its planned stock market debut, investors who focus on the sector said. per cent of sales.
We predict retailers in the fast-fashion apparel and footwear sectors within consumer discretionary goods could face significant headwinds over the next few months. Despite some retailers reporting strong sales because of the growth in online sales, netprofits declined. per cent decline in netprofit after tax.
Shein is preparing to start early, informal investor meetings in the coming weeks for its planned London initial public offering (IPO), as the fastfashion giant steams ahead with preparations as it awaits UK regulatory approval. The Shein share offering would provide a much-needed lift to London’s sluggish IPO market.
In what the Stockholm-headquartered multinational fast-fashion retailer described as a “strong recovery” H&M increased its netprofit nearly seven-fold to US$1.5 We ended the year strongly with sales back at the same level as before the pandemic and with profitability better than it has been for several years.”.
Shein’s planned IPO listing on the London Stock Exchange, expected in the first half of this year, will probably be delayed, Financial Times reported. Businesses and consumers are now left navigating an uncertain landscape, one where the cost of fastfashion, cheap electronics, and everyday goods could soon rise substantially.
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