Shein Sees Its Fast Fashion Sales Eclipsing Zara and H&M Combined

Shein is reportedly telling investors that it plans to double its revenue by 2025.

The Financial Times (FT) reported Friday (Feb. 17) that the online fast fashion giant also expects its gross merchandise value (GMV) will rise 174% over that same time.

These projections were included in a presentation that’s being shown to investors ahead of Shein’s initial public offering (IPO) that is to be held this year, according to the report, which cited unnamed sources and the FT’s own viewing of the document.

Shein did not immediately reply to PYMNTS’ request for comment.

The projected annual revenue of $58.5 billion would be more than double last year’s total of $22.7 billion and would top today’s combined sales of Shein’s competitors, H&M and Zara, according to the report.

It was reported in October that Shein was closing in on those two fast-fashion giants. The Wall Street Journal reported Oct. 28 that Shein was generating revenue at a pace that would put it close to them and that it was on track to boost its GMV by 50% year over year.

The WSJ attributed Shein’s gains to its ability to sell products at very low prices, its extensive product offering and its rapid response to new trends.

In January, fast-fashion competitor H&M said its fourth-quarter profits fell 68%. The firm attributed the drop to the winding down of its business in Russia and higher costs of raw materials, goods and freight.

As PYMNTS reported at the time, not mentioned in H&M’s results was the meteoric advance of Shein, whose social influencer-centric marketing has made it a hit with younger consumers living with inflation.

To reach its goals for 2025, Shein plans to focus on encouraging repeat purchases, increasing its variety of clothing lines and adding premium lines, the Friday FT report said.

The retailer will also face challenges. The Gen Z consumers who make up most of its customer base tend to not be brand loyal, and new companies that have entered the fast fashion space are competing for their attention, per the report.

Shein was valued at $100 billion in an April 2022 funding round but was reportedly seeking a new round in January that would cut its market cap to $64 billion.

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