Shein warned in IPO filings that the same tariff-driven sales decline battering its U.S. business could spread to Europe, its largest market, as the company prepares for a Hong Kong stock listing, according to CNBC. Europe represented 35% of Shein's 2025 revenue, and growth there had already been slowing — sales rose about 9% in 2025, down from 33% growth the year before, and climbed just 2% in the first quarter. Shein's filing follows results the company posted last month, which showed full-year 2025 revenue of $41.85 billion — an 8% rise that marked a steep deceleration from 20.7% growth in 2024. Shein is now targeting a valuation of $30 billion to $40 billion for the offering, a fraction of the $98.2 billion investors assigned it during a 2022 funding round. That segment's revenue grew about 40% in 2025, though it currently accounts for roughly 1% of total revenue.