Shoppers walk past an ad during the opening day of fast fashion e-commerce giant Shine’s brick-and-mortar pop-up inside Forever 21 at Ontario Mills Mall, Ontario, on October 19, 2023.
Allen J. Scherben | Los Angeles Times | Getty Images
ORLANDO, Fla. — Little is known about how much money Shane makes or how much profit he makes.
But the fast-fashion company’s revenue is reportedly “well over” $30 billion a year, one of the company’s key partners said on Monday.
“Shane is the world’s largest “It’s one of the fastest growing fashion retailers in the world, if not the fastest growing fashion retailer in the world.” Orlando.
“There’s talk of them doing $30 billion, but are they doing $40 billion? Are they doing $35 billion? I’m going to say exactly what they’re doing. “But I can tell you they’re doing well over $30 billion,” Salter continued, apparently referring to Shein’s annual sales.
As a privately held company, Shein does not disclose its financials. But the retailer has grown rapidly and, after months of efforts to resolve concerns that lawmakers had about its business practices, secretly filed to go public in the U.S., and may soon go public. You may have to.
But Salter is familiar with Schein’s financial situation, having formed a partnership with the company last summer.As part of the deal, Shane will work with Authentic. Simon Property Group. Spark acquired a minority stake in Shein.
Sparc is the operator of Forever 21, which is owned by Authentic. As part of the partnership, Shein began selling a co-branded clothing line with Forever 21 and began hosting pop-up events at many of the retailer’s mall stores.
Little is known about Shein’s finances, but snippets have leaked to the press in recent years as the retailer geared up for an initial public offering. Shein’s highest available revenue is Wall Street Journal May Articlereported that the company’s sales in 2022 were $23 billion, citing people close to the company.
The outlet reported that Shein has set a goal of increasing sales by 40% in 2023, which would push sales to more than $30 billion. It’s unclear whether the company achieved that goal.
Shein did not immediately respond to CNBC’s request for comment.
Even if Shein’s sales were “well over” $30 billion a year, its sales would still be much smaller than the retail giant’s sales. walmart and Amazon, which generates hundreds of billions of dollars in annual sales. But the figure would at least put it in line with Zara owner Inditex, which had sales of 32 billion euros in 2022, and H&M, which had sales of about $22 billion in the same year.
With total sales exceeding $30 billion, Shane will dwarf the U.S. retailer. Abercrombie & Fitch and american eaglerecently reported annual sales of $3.7 billion and $5 billion, respectively.
During the discussion, Salter talked about Authentic’s story, its growth plans, and how they decided to partner with Shein. Asked what his biggest mistake was, he said it was not recognizing the competitive threat posed by Shein and China-based online marketplace Temu earlier.
“My partner, [Simon Property Group CEO David Simon] “Why partner with Shane?” Do you think it’s the right decision? And I said, “David, that’s the right decision, we can’t beat them.” Their supply chain is amazing. they know what’s going on. They understood this. “We need to partner with them,” Salter recalled. “So I was brave and said, ‘Let’s partner with these guys.'”
Salter said the partnership is still in its early stages. “We’re dating right now,” he said, as both companies are still learning how to trust each other.
“The pop-up was a huge home run, and you know, Shane’s Forever 21 was good, not great, but it’s still early days. So the jury’s still out,” Salter said. said. “You’re dealing with people who don’t speak the same language as we do, who have different rules and trust factors than we do, and it takes time, right? You learn that. “Trust someone within 15 minutes. You have to earn that trust. … It’s a work in progress.”
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