Shein reports sharp drop in Europe sales after price hikes and EU customs fees

Shein, the fast-fashion platform, reported a sharp drop in sales in Europe in the second quarter of 2026 after hiking prices and cutting online advertising in anticipation of EU fees on low-value parcels. Europe revenue fell 13.9% to $3.77 billion, while US revenue declined 6% to $2.5 billion. Overall sales rose 0.9% due to Latin America growth. Since its September 1 Hong Kong debut, shares have dropped 27.3%. The EU imposed fees from July 1, and Shein's third-quarter results, due Monday, are expected to show further impact.