Shein Q2 Profit Plunges 67% on Rising Air Freight Costs, Weak Europe Sales

Shein's first public quarterly report shows adjusted net income fell 67% YoY to $228M, with margins compressing to 2.1% from 6.2%, driven by Middle East conflict-related fuel and freight cost spikes and declining European demand. The results confirm investor fears of margin pressure and growth slowdown, signaling potential downside for the stock and broader fast-fashion sector.