The Globe and Mail reports in its Tuesday, July 28, edition that investors are expected to scrutinize whether fashion giant Shein can justify the $40-billion to $50-billion valuation it is seeking in a Hong Kong initial public offering after a prospectus filed on Sunday showed slowing growth and a sharp decline in profitability (all figures U.S.). A Bloomberg dispatch to The Globe reports that revenue rose 8 per cent to $41.8-billion in 2025, but net income fell 39 per cent to $2.06-billion. In the first quarter of this year, Shein swung to $99-million loss, the filing showed. Slowing revenue growth and weaker core earnings underscore Shein's mounting challenges. Europe's new fee on low-value imports poses another challenge -- Shein said it was possible that trends in the EU could be "generally in line with or exceed the impact observed" in the United States. Shein's challenges in Europe could lead to a lower level of competitive intensity at the value end of the market, which could be positive for fashion retailers Primark, owned by Associated British Foods, and H&M, Citi said in a note. Bloomberg expects the listing to attract investor interest.