The fast-fashion retailer’s net profit margins decreased significantly from 8.7% in 2024 to 4.9% in 2025, as the company faced increased tariffs and customs duties. The U.S. market, once accounting for 30% of Shein’s revenue, has declined to 22% this year, prompting the company to consider price adjustments to mitigate rising costs. Additionally, Shein is navigating regulatory scrutiny in the EU and is attempting to diversify its supply chain amid concerns over production practices.