Shein’s UK profits have doubled as sales hit £1.5bn

In its latest filing to Companies House in the UK, Shein reported a 40% rise in turnover to £1.55bn for the full year to December 31, 2023.

Pre-tax profits at Shein Distribution UK also surged from £12.2bn during the 16 months to December 31, 2022, to reach £24.4m last year, on which it also paid £5.7m in income tax.

Operating profit in the UK also soared from £12.2bn to £24.2bn, while total profit for the year almost doubled from £9.8bn to £18.7bn for the year.

Shein hailed the success of its UK pop-ups during the year, including a bus tour, as well as the opening of its officer in Manchester, the fast-fashion hub of the UK.

Shein confirmed it had 33 employees during the period who were “primarily providing marketing expertise for the UK market”.

A spokesperson for Shein told The Guardian: “Shein has grown revenue and profit over the last year. This has been driven by strong customer demand and loyalty across the UK.

“We continue to invest in our on-demand platform to provide more choice and better experience for customers.”

The latest figures for its UK arm come amid rumours that Shein is seeking a blockbuster listing on the London Stock Exchange.

Superdry boss Julian Dunkerton became the latest retail leader to raise concerns about Shein last month when he called on the government to ban Shein from “dodging tax” and said the business has an “unfair advantage” due to import duties not being charged on low-value parcels it ships directly to customers from overseas.

He also described Shein as a “complete environmental disaster”.

Business secretary Jonathan Reynolds, Next chief executive Lord Wolfson and Sainsbury’s boss Simon Roberts have also raised concerns and called on the government to review the tax “loophole”.

It was reported earlier this year that Shein is understood to be eyeing a “large site” in the Midlands among other possible locations for a UK-based warehouse in preparation for a float.