Shein, a China-founded online fast-fashion retailer, has reported substantial growth in its UK operations, with revenue climbing 26% to £2.58bn according to recent filings with Companies House. The company’s pre-tax profits rose 18% to £45.2m during the period, while its UK workforce expanded to 113 employees from 91 a year prior, primarily in sales and marketing roles. The company paid £11.2m in current tax, up from £9.6m in the previous year.
The strong performance was bolstered by several strategic initiatives, including a marketing partnership with the Wireless and Creamfields music festivals, a temporary retail location on London’s Oxford Street, and seasonal promotional events in multiple UK cities. With these results, Shein’s UK division has overtaken Asos, which reported £2.47bn in sales for the year ending in August 2025, though Asos’s figure includes non-UK revenues while Shein’s figures are UK-specific.
Shein’s expansion comes amid growing scrutiny of the regulatory environment surrounding its business model. The company relies on shipping low-cost clothing orders directly to consumers from Chinese factories, with individual shipments valued low enough to avoid import duties under the so-called “de minimis” exemption. This exemption, which currently allows goods valued at £135 or less to enter the UK duty-free, has drawn criticism from government officials and retail sector leaders.
Government action on the de minimis rule has accelerated elsewhere. The US eliminated its exemption for Chinese goods last year, while the EU began phasing out its own relief in July with a flat €3 customs duty replacing the €150 threshold. Former UK Chancellor Rachel Reeves pledged to eliminate the UK’s exemption by 2028, though major retailers have urged faster implementation.
Shein’s Hong Kong listing last month valued the company’s global parent group at just over $26bn. However, recent results showed the company’s quarterly group profits fell 67% to £173m in its first post-float quarter, with management citing elevated oil prices and freight costs connected to regional instability.
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