Shein sets ambitious revenue target ahead of IPO
Fast fashion e-tailer Shein has reportedly set a significant full-year revenue growth target of 58.5 billion dollars in 2025, up from the 22.7 billion dollars it reported last year.
If achieved, its annual revenue streams would be above that of retail giants H&M and Zara combined, noted the Financial Times, which initially reported the news after it viewed a management presentation by the company.
Shein also projected its gross merchandise value would grow to 80.6 billion dollars in 2025, rising 174 percent on last year.
The publication added that in order to reach such goals, the Chinese company must significantly alter sales patterns, with a particular need to gain more repeat customers and diversify price ranges.
It comes as Shein looks to impress investors ahead of its transition to a public company, with it planning to launch a large-scale listing in the US later this year.
Last month, Shein’s CEO Chris Xu was already reportedly mulling a three billion dollar funding round after reducing its valuation from 100 million dollars, set in April 2022, to 64 billion dollars.
According to FT, the document further stated that it had achieved a profit of around 700 million dollars in 2022, a decline from the 1.1 billion dollars it had seen in 2021.