Temu parent PDD Holdings reported a 47% drop in first-quarter profit to $2.03 billion, missing analyst expectations. New U.S. tariffs and the end of a duty exemption for low-value Chinese packages disrupted operations at its cross-border shopping platform, Temu. The company’s revenue rose 10% to $13.18 billion, its slowest growth since early 2022, amid economic pressure and competition in China. Citi analysts noted a decline in Temu’s U.S. sales since April and cut revenue forecasts through 2026. PDD plans to invest over $13 billion to retain merchants but warned profitability may remain under pressure. Shares fell 14% on Tuesday.
