Tariff changes have already reduced sales and raised fulfilment costs, while an undisclosed FTC investigation could produce a settlement or other outcome in what the company says may be the near term. Shein said it is cooperating with the FTC but cannot predict when the investigation will end or how it will be resolved. The filing does not explain what the FTC is examining, when the agency opened the investigation, or how much Shein could be required to pay. Shein reported a net loss of $99 million for the quarter, compared with net income of $395 million one year earlier. The FTC investigation is part of a broader compliance burden disclosed in the prospectus.