Yatsen posts 23.8% revenue jump

Yatsen Holding reported second-quarter 2026 results on Wednesday that showed faster growth in skincare but weaker profitability, as the Chinese beauty group continued shifting its sales mix away from color cosmetics. The company said total net revenues rose 5.1% year on year to RMB1.14 billion, or about $168.3 million, for the quarter ended June 30. Net loss widened to RMB90.8 million from RMB19.5 million a year earlier, while non-GAAP net loss was RMB99.4 million compared with non-GAAP net income of RMB11.5 million in the prior-year period. The results were released in a company statement and on Yatsen’s investor relations site. ### Why does a revenue gain come with a larger loss? Gross margin fell to 73.9% in the second quarter from 78.3% a year earlier, according to Yatsen’s results statement. The company also said net loss attributable to ordinary shareholders per diluted ADS was RMB0.97, compared with RMB0.19 in the prior-year period. (prnewswire.com) Yatsen said competition in China’s beauty market remained intense even as demand improved. Founder, Chairman and Chief Executive Officer Jinfeng Huang said in the statement that the market showed “broad resilience” in the quarter, but added that competition across the industry had intensified. (prnewswire.com) ### Which part of the business drove the quarter? Skincare brands generated RMB816.1 million in second-quarter revenue, up 40.4% from a year earlier, Yatsen said. That business accounted for 71.5% of total net revenues, up from 53.5% in the same quarter of 2025. (prnewswire.com) The shift matters because Yatsen has spent several years leaning more heavily on premium skincare labels, including Galénic, DR.WU and Eve Lom, rather than relying mainly on its color cosmetics business. The company did not provide a detailed category breakdown in the search excerpts beyond the skincare mix, but the reported change in revenue composition shows skincare carrying a larger share of the business than a year earlier. (prnewswire.com) ### What did management say about demand in China? Jinfeng Huang said China’s beauty market improved slightly in the second quarter, though conditions stayed challenging. He said Yatsen’s skincare portfolio delivered “robust growth momentum,” according to the company statement. (prnewswire.com) That language tracks with the company’s earlier outlook. In its first-quarter 2026 results, Yatsen had forecast second-quarter net revenues of RMB1.20 billion to RMB1.30 billion, which it said would represent year-on-year growth of about 10% to 20%. The reported RMB1.14 billion came in below that range. (prnewswire.com) ### How does this compare with a year earlier? Second-quarter 2025 revenue was RMB1.09 billion, and net loss then had narrowed to RMB19.5 million from RMB85.5 million a year before, according to Yatsen’s 2025 results release. Gross margin in that earlier quarter was 78.3%, higher than this year’s 73.9%. (ir.yatsenglobal.com) The comparison shows Yatsen kept growing sales in 2026 but gave up margin and earnings versus the same period last year. The company’s statement did not, in the excerpts available, quantify all of the drivers behind the margin decline beyond the broader competitive backdrop. (prnewswire.com) ### What comes next for investors? Yatsen said management would hold a conference call on September 2 at 7:30 a.m. U.S. Eastern Time, or 7:30 p.m. Beijing time, to discuss the quarter’s financial results and operating performance. The company’s shares trade on the New York Stock Exchange under the ticker YSG, and the full release was posted on its investor relations website and distributed through PR Newswire. (prnewswire.com)