Shein, the online fashion platform with origins in China, has seen its UK annual revenue climb by 26% to reach £2.58bn. This surge in performance has allowed the retailer to surpass British competitor Asos, which recorded sales of £2.47bn for the year ending August 31, 2025. Notably, the Asos figure includes international revenue, whereas the Shein data reflects its UK-specific performance.
The company’s financial growth was bolstered by several strategic marketing initiatives, including partnerships with the Creamfields and Wireless music festivals. Additionally, the brand hosted pop-up shops on London’s Oxford Street and organized Christmas gift events in Manchester, Edinburgh, Liverpool, and the capital.
As outlined in recent filings at Companies House, Shein’s pre-tax profits climbed by 18% to £45.2m. The firm’s UK headcount increased from 91 to 113 employees, with most roles focused on marketing and sales. Furthermore, the company paid £11.2m in current tax, an increase from the £9.6m reported in the previous year. Mostly in sales and marketing, rose to 113 from 91 a year before, pre-tax profits rose 18% to £45.2m even as the number of people employed by the group in the UK.
Despite this growth, the retailer faces intensifying pressure regarding the “de minimis” rule. This regulation currently allows low-value parcels sent directly from factories—frequently located in China—to enter the UK duty-free. The government has signaled intentions to remove this exemption by 2028, though retail industry leaders have urged for more immediate action. Shein’s strong trading figures are likely to increase pressure on the government to bring forward action to change the “de minimis” rule that has underpinned the rise of the fast-growing online specialists Shein and Temu. The retailer’s model is based on shipping orders of cheap clothes from Chinese factories to homes so that each order is low enough in value to avoid import duties. Which was scrapped last year, parcels with a value of less than $800 (£600) shipped to individuals had been spared from import tax, under the US exemption. According to the former UK chancellor Rachel Reeves, She would get rid of the UK’s rule, which allows overseas sellers to send goods valued at £135 or less direct to British shoppers without paying any customs duty, by 2028.
Regulatory scrutiny is mounting globally. In the United States, the de minimis exception for Chinese-made goods was revoked last year, while the European Union is currently replacing its €150 duty-free relief with a flat €3 customs charge. These shifts have affected investor sentiment; Shein’s global valuation upon its recent Hong Kong stock exchange listing was approximately $26bn, significantly lower than the $100bn valuation it reached during a 2022 funding round. The company, whose global parent group listed on the Hong Kong stock exchange valued at just over $26bn (£19.6bn) last month, increased sales at its UK division by 26% to £2.58bn, according to accounts filed at Companies House.
The company, founded by entrepreneur Chris Xu, shifted its headquarters to Singapore in early 2022. While its core operations remain in China, it has begun establishing manufacturing hubs in nations such as Brazil and Turkey. Regarding labor concerns, Shein has stated that it now enforces strict supplier policies through regular audits, noting that any child or forced labor violations are grounds for immediate contract termination.
The company’s recent performance report also highlighted broader economic headwinds. In its first results since going public, the group reported a 67% decline in quarterly profits to £173m, attributing the downturn to increased freight costs and rising oil prices stemming from the conflict in Iran.
