Chinese cosmetics firm Yatsen Q2 revenue rises

Yatsen Holding

21/08/2025 10:10

Overview

Yatsen Q2 2025 rev rises 36.8% yr/yr to RMB1.09 bln

Net loss narrows 77.2% to RMB19.5 mln, non-GAAP net income positive

Gross margin improves to 78.3%, driven by higher-margin product sales

Outlook

Yatsen expects Q3 2025 net revenues between RMB778.6 mln and RMB880.1 mln

Company forecasts Q3 2025 revenue growth of 15% to 30% year-over-year

Result Drivers

SKINCARE SALES - Skincare brands' revenue surged 78.7%, now accounting for 53.5% of total revenue

HIGHER MARGINS - Increase in gross margin to 78.3% driven by sales of higher-margin products

SHOPPING FESTIVAL - June 18 shopping festival contributed to revenue growth, per CFO Donghao Yang

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
RMB 1.09 bln
Q2 Adjusted Net Income
RMB 11.50 mln
Q2 Net Income
-RMB 19.50 mln
Q2 Gross Margin
78.3%
Q2 Gross Profit
RMB 850.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

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 $6.80, about 40.3% below its August 20 closing price of $9.54

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 44 three months ago

Press Release: ID:nPn6rsJ2Ca

(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.)