Online fast-fashion retailer Shein is set to cut its valuation in a potential London listing to around $50 billion, said three people with knowledge of the matter, nearly a quarter less than the company’s 2023 fundraising value amid growing headwinds.
The company’s business prospects have come under a cloud in recent days after the Trump administration said it would close the “de minimis” duty exemption in the United States, ending an import rule that had helped Shein keep prices low.
The measure’s removal could hurt Shein’s profitability and push up product prices in the U.S., its biggest market, analysts and industry experts have said.
The eventual IPO (initial public offering) valuation will depend on the impact of the end of de minimis on the retailer’s business, one of the people said. Given the removal only took place this week, it will take time to assess, they added.
Shein and rival Temu together probably accounted for more than 30% of all packages shipped to the U.S. each day under the de minimis provision, the U.S. congressional committee on China said in a 2023 report. The measure exempted shipments of less than $800 from import duties.
The sources declined to be named as they were not authorised to speak to the media. Shein, founded by China-born entrepreneur Sky Xu, did not respond to a request for comment.
The removal of de minimis is part of President Donald Trump’s imposition of an additional 10% tariff on China in what he called an “opening salvo” in a clash between the world’s two largest economies.
Nearly half of all packages shipped under de minimis come from China, according to the congressional committee report.
Shein had been aiming to go public in London in the first half of this year assuming it secured approvals from regulators in the U.K. as well as in China, Reuters reported last month.
The company’s last fundraising round in 2023 valued it at $66 billion, about a third less than its peak a year earlier, sources have told Reuters.
The latest target IPO valuation would mark the retailer’s second consecutive down round, when a company takes a hair cut on its valuation during a funding round. The reasons were not immediately known.
Shein’s proposed IPO comes at a time when the UK government has been pressuring its regulators to be more pro-growth and has launched an overhaul of listing rules to make London a more attractive market to companies.
A UK government source who declined to be named as they were not authorised to speak about the deal publicly said it was still keen for Shein to launch an IPO in London. Shein confidentially filed papers with Britain’s Financial Conduct Authority (FCA) in early June, sources told Reuters last year. However, it has taken longer than typically expected for the regulator to sign off on the listing.
The FCA has not made any decision to approve the IPO yet, a separate person said. The FCA declined to comment.
Market experts say it usually takes several months to reach a decision. A spokesperson for the FCA previously said timelines for IPO approval depend on each individual case.
Shein shifted its plans to list in Britain last year, ending an attempt at a U.S. IPO after pushback from lawmakers concerned about alleged labour malpractices and lawsuits from competitors.
The IPO will also need approvals from Chinese regulators notably the China Securities Regulatory Commission (CSRC), sources have told Reuters.
“Amouage is the fastest-growing fragrance brand in Oman,” said Nicolas Hieronimus, CEO of L’Oréal, during a conference with analysts and the press on Friday February 7, underlining the group’s intention to become more entrenched in the Middle East.
Amouage was founded in 1983, and promotes the heritage of the Sultanate of Oman. Its products, hailed as the “gift of kings,” are distributed via about 20 directly owned stores and 1,000 multibrand retailers, including department stores, selective perfumery chains and airport stores.
Amouage perfumes are priced from €365, and in 2023 the brand generated a revenue of $210 million (€202 million).
With this acquisition, the L’Oréal group has again bolstered its luxury division which, in 2024, recorded a revenue of €15.5 billion, up 2.7% on a comparable basis.
Happening New York-based brand Area has named Nicholas Aburn as its new creative director, succeeding his predecessor, Piotrek Panszcyk, within days of his departure.
Nicholas Aburn steps into his new role as creative director at Area – Serena Becker
“Beckett Fogg, CEO and founder, announces the appointment of Nicholas Aburn as creative director at Area. He starts in March, and his first collection will be Spring/Summer 2026,” the company said in a statement.
Most reports had previously described Area as being jointly founded by Fogg and Panszcyk after their graduation from Parsons School of Design.
A hyper-directional brand featured prominently at Coachella, Area celebrated its 10th anniversary last year.
Originally from Maryland, Aburn studied at Central Saint Martins in London before beginning his career at Tom Ford. He later worked as senior womenswear designer at Alexander Wang in New York and most recently served as senior designer at Balenciaga Couture.
“Area is proud to welcome Nicholas Aburn as our new creative director. His vision for the brand’s evolution will amplify Area’s resonance and propel us into an exciting new era,” said Fogg in the official release.
Aburn added: “New York has always inspired me with its mix of raw energy and glamour. Area truly embodies this spirit, and I am excited to bring the brand back to its roots.”
When Elliott Hill became chief executive officer of Nike Inc., among his first orders of business was securing its future alongside the biggest sport in the US: pro football.
Nike and the NFL have been closely allied since early last decade, when the league ended its apparel licensing deal with Reebok, then owned by Adidas AG – Photographer: Michael Allio/Icon Sportswire/Getty Images
In October, shortly after Hill arrived at Nike headquarters in Beaverton, Oregon, he called NFL Commissioner Roger Goodell. The league’s coveted licensing deal with Nike for its on-field uniforms was set to expire in 2027, and it had been considering other bidders.
It would be a major blow to Nike to lose the licensing pact, one that it wrestled away from Reebok beginning in 2012, as investors were fleeing the stock of the world’s biggest sporting brand after an awful stretch full of declining sales, cost cutting and worries that the company had damaged relationships with retailers and licensors beyond repair.
In an early message to employees seen by Bloomberg News, Hill, who had come back to the company after a previous stint as a top executive, promised to return to prioritizing sports as Nike’s core. The big critique of the company, and one of the reasons it replaced previous boss John Donahoe with Hill, was that it had gone overboard on chasing revenue from fashion and lifestyle products, while ceding market share to competitors focused on performance.
The NFL, meanwhile, wanted help with Goodell’s ambitious plans to push football abroad and grow its fanbase. Within two months, the they closed an extension to their licensing deal, aligning two of the most influential names in sports through 2038. The NFL gives Nike stability in one sport during a tumultuous time, while the league sees its new arrangement as a vital avenue for growth.
“Global is something we intend on becoming, and Nike is a global brand that can help us in that area,” Goodell said this week in New Orleans ahead of the Super Bowl. The league and the sporting giant’s teams are already discussing international plans, he said. “They’re a critical partner.”
Nike declined to comment for this story.
‘Strong Footing’
Nike and the NFL have been closely allied since the league ended its apparel licensing deal with Reebok, then owned by Adidas AG. While other companies were awarded licenses for elements such as helmets and base layers, Nike was chosen for the league’s most valuable offering: on-field uniforms. At the time, an analyst projected it could generate $500 million in revenue a year for Nike.
Hill is the third Nike CEO that Goodell has worked with. Mark Parker, now Nike’s executive chairman, signed that jersey deal. Donahoe inherited the previous pact and began talks with the NFL before he was replaced by Hill last year.
“Elliott coming in and really wanting to start that relationship off on really strong footing was clear,” said Joe Ruggiero, senior vice president of the NFL’s consumer products division. “The timing of that worked out.”
There are risks, though. Nike’s license with Major League Baseball has gotten headlines for all the wrong reasons. After complaints from players and fans last year about a Nike-designed revamp, MLB reverted to its old uniforms in an embarrassing turn for both parties.
International expansion has been a longtime goal for Goodell’s NFL, and Nike has a presence across the planet. Goodell recently said that could include an entire division of teams outside the US. Priority markets include the UK, China, Canada, Mexico, Germany and Brazil, where it played for the first time this season. NFL teams will play games in London, Berlin and Madrid in 2025.
As part of the arrangement, the NFL wants to use Nike’s expertise to ensure that it retains fandom in countries that it visits. That includes distribution and fan merchandise through a three-way deal with Fanatics Inc. If fans don’t have access to fan gear, those growth goals are a lost cause.
“We can put the greatest display on for one day — and if we don’t create a fan that’s going to be there tomorrow, we haven’t really done our job,” said Ruggiero. “Our product has got to be available where fans are shopping.”
Nike will be getting more involved in grassroots development programs, both in tackle football and flag football for boys and girls. That flag football component helps abroad as well, since the NFL sees the non-contact version of the game as a way to introduce international fans to the sport. The league is also working on founding pro flag football leagues for women and men as the sport heads toward its Olympic debut in 2028 in Los Angeles.
Nike and the NFL are collaborating more closely in their marketing efforts, too. They’ve worked together for decades, and Nike has dozens of pro football players signed to its endorsement roster, including Philadelphia Eagles stars Jalen Hurts and Saquon Barkley who are playing in the Super Bowl on Sunday. But the contract extension now allows for long-term planning on major advertising initiatives.
“We’re being incorporated into some of Nike’s bigger campaigns, and we’re incorporating Nike in ours,” Ruggiero said.
Beyond the football jerseys, Nike will play a key role in player safety by devoting resources from its sports research lab to product design to address injuries to the lower extremities. Goodell is looking to “enhance the science” in cleat safety on the various surfaces used at NFL stadiums. He described Hill, his new partner, as being both outspoken and cooperative.
“They’re one of the few partners we allow on the field,” Goodell said.
Entertainment8 years ago