China's Yatsen Q2 revenue rises 5% as skincare growth offsets cosmetics decline

Yatsen Holding

02/09/2026 10:11

Overview
China beauty group's Q2 revenue rose 5.1% yr/yr, driven by skincare brand growth
Company posted a non-GAAP net loss, reversing a profit last year
Yatsen expects Q3 revenue to fall up to 10% yr/yr

Outlook
Yatsen expects Q3 net revenue between RMB898.6 mln and RMB998.4 mln, down 0%-10% y/y
Company aims to further optimize product portfolio and channel execution in coming quarters
Yatsen says it will focus on improving marketing spend efficiency and operating cost structure

Result Drivers
SKINCARE GROWTH - Co said 40.4% yr/yr revenue growth in skincare brands, led by clinical and premium brands, offset weakness elsewhere
COLOR COSMETICS DECLINE - Co said color cosmetics segment faced structural headwinds and intensified competition, prompting portfolio streamlining
GROSS MARGIN PRESSURE - Co said gross margin fell due to higher inventory provisions tied to brand portfolio optimization and SKU rationalization

Company press release: ID:nPn6N6s9Ga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 1.14 bln
 
Q2 Adjusted Net Loss
 
RMB 99.4 mln
 
Q2 Net Loss
 
RMB 90.8 mln
 
Q2 Gross Margin
 
73.9%
 
Q2 Gross Profit
 
RMB 843.8 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the personal products peer group is "buy"
Wall Street's median 12-month price target for Yatsen Holding Ltd is $4.00, about 50.4% above its September 1 closing price of $2.66
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)