Online retailer Shein Group’s UK subsidiary, Shein Distribution UK, has reported £1.55bn ($2.03bn) revenue in the year to December 2023 – a 38% rise from the previous year.
The figure, reported by the company in a filing with the UK’s Companies House, comes as the fashion retailer considers a potential initial public offering (IPO) in London.
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The company, originally from China and now headquartered in Singapore, is awaiting regulatory go-aheads from the Chinese and the UK authorities to proceed with the IPO, which could value Shein at £50bn.
The company’s British revenue growth is attributed to high customer demand.
In addition to the sales boost, Shein UK business reported a pretax profit of £24.4m in 2023.
The subsidiary, incorporated in 2021, has been instrumental in expanding Shein’s presence in the UK.
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By GlobalDataThe significant milestones for the company during the year were the opening of a Manchester office, the launch of pop-up shops in the UK and a bus tour.
At the end of the year, the company reported £29m in net assets of the business including £16.7m in cash and cash equivalents, and £16.9m in intra-group assets.
During the year, the company employed 33 staff members primarily focused on marketing activities for the UK market.
The filing revealed that Shein Distribution UK operates as a wholly-owned subsidiary of Roadget Business, based in Singapore, with Elite Depot, registered in the Cayman Islands, as the ultimate controlling entity.
Shein’s choice of London for its IPO comes after considering and then dismissing a US listing due to intense scrutiny over the company’s Chinese origins and allegations of labour malpractices.
In August 2024, the boss of the London Stock Exchange Group reportedly denied lowering standards to lure the fast-fashion retailer’s IPO to London.
The company will be holding informal investor meetings across Europe for the planned IPO, as recently reported by Reuters.
