Shares of fast-fashion platform Shein fall 4% after quarterly profit slides 67%

Shares of fast-fashion platform Shein fall 6% after quarterly profit slides 67% HONG KONG, Sept 29 : Shares of fast-fashion retailer Shein dropped more than 6 per cent on Tuesday after it reported a 67 per cent fall in quarterly profit, fuelling investor concerns over margin pressure and slowing growth. Jefferies analysts estimated that earnings landed more than 10 per cent below the low end of the range implied by Shein's prospectus. Adjusted net profit was $228 million for the second quarter and its margin was squeezed to just 2.1 per cent from 6.2 per cent last year as conflict in the Middle East pushed up jet fuel and freight costs for the retailer that sends cheap clothes by air to shoppers around the world. Since its September 1 stock market debut in Hong Kong to Monday's market close, Shein's shares have dropped 27.3 per cent from the offer price of HK$48.56 ($6.19). The stock was trading around HK$33.40 on Tuesday. Shein CEO and Chair Yangtian Xu said on Monday a key priority was increasing the amount of inventory in Europe and the company plans to push into higher-priced clothes that will boost its profitability. ($1 = 7.8443 Hong Kong dollars) (Reporting By Anne Marie Roantree; Editing by Christian Schmollinger and Tom Hogue)