Fast fashion e-tailer Shein is believed to have seen its group net profit drop by nearly 40 percent to one billion dollars in 2024 amid heightened competition from rival Temu.

Two sources with knowledge of the matter told the Financial Times (FT) that while sales for the full year rose 19 percent to 38 billion dollars, its reported net profit came far below the 4.8 billion dollars it anticipated for 2024.

Such a prediction had been made in a presentation to investors in early 2023, which was also seen by (FT) and where a sales projection of 45 billion dollars for the year was also forecast.

The latest figures shared were from internal projections ahead of finalised accounts, FT’s sources stated. Shein did not respond to the media outlet’s request for comment.

The disappointing results could be yet another obstacle in the Singapore-based company’s lengthy pursuit of a London Stock Exchange flotation, for which it is currently battling for regulatory approval alongside geopolitical pressures.

While legal challenges from NGOs and supply chain uncertainties had until recently dominated discussions, the re-election of US president Donald Trump has also thrown the IPO into doubt.

According to a previous report by the FT, “Trump’s crackdown on low-value packages”, seen in the implementation of tariffs on Chinese imports and the possible abolition of the de minimus rule, could mean Shein’s IPO will miss its listing target date, said to be around April 20.

The company is also believed to be cutting its valuation from 66 billion dollars to 50 billion dollars amid a “worsening business outlook”, according to Reuters, with obstacles in the US mounting on the possible tightening of regulations in the EU, which is considering removing duty-free allowance for packages under 150 euros.

Delaying the IPO to the second half of the year, which is now the speculated launch period, would require Shein to refile documents with UK regulators, dragging the process on longer.