According to The Information, Shein’s revenue growth in the first half of this year fell to 23% from 40% last year, with revenues at $18 billion and profits down over 70% to under $400 million. Temu’s rapid rise in the US has not only encroached on Shein’s market share but also increased its costs, including air freight and marketing. Shein briefly expanded its product offerings beyond fashion to compete with Temu, resulting in significant losses and a profit margin drop from 8% to 2%. Management has now decided to focus on branded and fashion products instead. Established fast-fashion retailer Inditex outperformed Shein last year in both sales and profit margins. Shein expects revenue growth to stabilize between 20% and 30% moving forward.