SHEIN Shares Drop 10% Following Contact Lens Recall in Oceania
A contact lens recall in New Zealand and Australia triggered a 10% drop in SHEIN shares on the Hong Kong Stock Exchange amid mounting financial losses and regulatory hurdles.
A recall of contact lenses in New Zealand and Australia has led to a 10% drop in shares of e-commerce giant SHEIN on the Hong Kong Stock Exchange. According to a statement issued on Friday by the New Zealand Ministry of Business, Innovation and Employment, testing of these contact lenses tested positive for Burkholderia cepacia complex, a bacterial contaminant found in the packaging solution.
The Australian Competition and Consumer Commission also announced a recall. This move follows a sluggish initial public offering earlier this month. The Chinese company, which gained immense popularity during the pandemic, is now facing hurdles including allegations of forced labor and environmental pollution.
SHEIN reported a loss of $99 million for the first three months of the year, compared to a profit of $395 million in the same period last year. Despite these challenges, the company continues to expand its operations in the US, recently opening a new logistics center in Indiana equipped with automated distribution machinery.
