Shein’s long-awaited market debut in Hong Kong disappoints as headwinds mount | CNN Business

Shein was the ultimate disruptor in fashion. By turning online trends into $11 jeans or $3 crop tops in a matter of days, the ultrafast fashion retailer overtook established companies such as Zara and H&M, prompting it to eye an initial public offering that would value the company at nearly $100 billion. But after years of delay amid failed attempts to go public in New York and London, the Chinese-founded company is staring down a starkly different reality as its stock finally started trading publicly in Hong Kong. On Tuesday, Shein’s shares tumbled nearly 10% at the open, reinforcing lackluster demand as the company’s struggles have mounted. In the IPO last week, Shein raised $1.7 billion, valuing the company at $26.5 billion – down more than 70% from its peak valuation of $98.2 billion in 2022. The sharply lower valuation and meagre interest underscore investors’ concerns about its business prospects amid increased competition, geopolitical pressure, and questions surrounding its sustainability and labor practices. Last year, Shein saw its net income plunge 39% from a year ago, despite a growth in revenue, according to its prospectus released in July. But in the first qua