New Zealand’s Ministry of Business, Innovation and Employment said in a statement on Friday that a sample of the lenses tested positive for Burkholderia cepacia complex, a bacterial contaminant found in the solution in which the lenses were packaged.
“Exposure to this bacterium may pose a risk of eye infection or irritation,” the Ministry said. It added that an incident had already been reported in the United Kingdom, where a user developed an eye infection after using the product.
The Australian Competition and Consumer Commission issued a similar recall notice.
Shein’s stock dropped to as low as HK$36.30 in intraday trade, down about 9.59%, extending losses that first surfaced during the company’s turbulent Hong Kong debut earlier this month.
Shein listed on the Hong Kong exchange in early September, raising HK$13.6 billion ($1.7 billion) through its initial public offering.
Shares fell as much as 10% on debut day, dropping to a low of HK$43.72 against an IPO price of HK$48.56, according to a Bloomberg report.
That listing valued the company at just over $26 billion, making it one of the world’s largest publicly traded apparel firms, though still behind Sweden’s Hennes & Mauritz AB, valued at roughly $30 billion.Since its 2022 peak valuation of nearly $100 billion, Shein has faced mounting pressure from higher tariffs, tighter regulatory scrutiny and stiff competition from PDD Holdings’ Temu and Alibaba’s AliExpress.
The company built its business on a data-driven supply chain that allowed it to design, produce and ship low-cost clothing to customers rapidly, making it one of the biggest beneficiaries of the pandemic-era e-commerce boom.
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Shein said it would contact affected customers directly to arrange full refunds to their original payment method, and urged owners of the recalled lenses to stop using them and dispose of the product safely.
Those experiencing eye symptoms such as redness, pain, discharge or blurred vision after wearing the lenses were advised to seek medical attention promptly.
Also Read: Fast fashion giant Shein valued at up to $27 billion in Hong Kong IPO
