Yatsen Holding Limited, a leading China-based beauty group, announced its unaudited financial results for the second quarter ended June 30, 2024.
Total net revenues decreased by 7.5% to $109.3 million from the prior year period.
Mr. Jinfeng Huang, Founder, Chairman, and Chief Executive Officer of Yatsen, stated,
China’s beauty industry experienced a subdued second quarter, with the 618 Shopping Festival falling short of expectations and growth lagging the overall consumer goods sector. Our total net revenues declined in the second quarter, while our three major clinical and premium skincare brands, including Galénic, DR.WU, and Eve Lom, achieved another quarter of combined net revenue growth. Despite the ongoing uncertainties in consumer demand, we will continue to focus on broadening our product portfolio and optimizing our channel mix with the goal of returning to a growth trajectory while balancing profitability.”
Total net revenues from skincare brands reached $44.8 million, remaining flat as compared with the prior year period. Compared to the prior year period, total net revenues from Skincare Brands for Q2 of 2024 were 40.9%, and 37.9% for the prior year period.
Mr. Donghao Yang, Director and Chief Financial Officer of Yatsen, commented,
“The challenging beauty market conditions in China negatively impacted our sales in the second quarter, resulting in a year-over-year decline of 7.5% in total net revenues. However, our three major skincare brands proved resilient, with net revenues increasing by 5.0% year over year. In addition, our gross margin improved by 2.0 percentage points year over year to 76.7%, while our net loss margin narrowed to 10.8% from 12.6% for the prior year period. We also continued to execute our share repurchase program, demonstrating our confidence in the Company’s long-term growth prospects.”
For the Q3 of 2024, Yatsen expects its total net revenues to be between $90 million and $100 million, representing a year-over-year decrease of approximately 0% to 10%.
Total net revenues decreased by 7.5% to $109.3 million from the prior year period.
Mr. Jinfeng Huang, Founder, Chairman, and Chief Executive Officer of Yatsen, stated,
China’s beauty industry experienced a subdued second quarter, with the 618 Shopping Festival falling short of expectations and growth lagging the overall consumer goods sector. Our total net revenues declined in the second quarter, while our three major clinical and premium skincare brands, including Galénic, DR.WU, and Eve Lom, achieved another quarter of combined net revenue growth. Despite the ongoing uncertainties in consumer demand, we will continue to focus on broadening our product portfolio and optimizing our channel mix with the goal of returning to a growth trajectory while balancing profitability.”
Total net revenues from skincare brands reached $44.8 million, remaining flat as compared with the prior year period. Compared to the prior year period, total net revenues from Skincare Brands for Q2 of 2024 were 40.9%, and 37.9% for the prior year period.
Mr. Donghao Yang, Director and Chief Financial Officer of Yatsen, commented,
“The challenging beauty market conditions in China negatively impacted our sales in the second quarter, resulting in a year-over-year decline of 7.5% in total net revenues. However, our three major skincare brands proved resilient, with net revenues increasing by 5.0% year over year. In addition, our gross margin improved by 2.0 percentage points year over year to 76.7%, while our net loss margin narrowed to 10.8% from 12.6% for the prior year period. We also continued to execute our share repurchase program, demonstrating our confidence in the Company’s long-term growth prospects.”
For the Q3 of 2024, Yatsen expects its total net revenues to be between $90 million and $100 million, representing a year-over-year decrease of approximately 0% to 10%.
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