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Revenue grew 5.1% to RMB1.14 billion, driven by a 40.4% increase in skincare sales, which accounted for 71.5% of revenue. This was partially offset by a 35.8% decline in color cosmetics revenue amid portfolio optimization and SKU reductions.
Profitability weakened significantly: gross margin fell to 73.9% due largely to inventory provisions, while higher marketing expenses pushed the company's net loss to RMB90.8 million from RMB19.5 million a year earlier.
Yatsen plans to improve profitability by diversifying beyond Tmall and Douyin into business-to-business, offline, duty-free and professional channels. It forecasts third-quarter revenue of RMB898.6 million to RMB998.4 million, implying roughly flat to 10% year-over-year decline.
Yatsen (NYSE:YSG) reported second-quarter 2026 revenue growth of 5.1% as continued strength in its skincare portfolio offset a sharp decline in color cosmetics sales, while higher inventory provisions and increased marketing spending widened the company's losses.
#profitability #offset
Revenue grew 5.1% to RMB1.14 billion, driven by a 40.4% increase in skincare sales, which accounted for 71.5% of revenue. This was partially offset by a 35.8% decline in color cosmetics revenue amid portfolio optimization and SKU reductions.
Profitability weakened significantly: gross margin fell to 73.9% due largely to inventory provisions, while higher marketing expenses pushed the company's net loss to RMB90.8 million from RMB19.5 million a year earlier.
Yatsen plans to improve profitability by diversifying beyond Tmall and Douyin into business-to-business, offline, duty-free and professional channels. It forecasts third-quarter revenue of RMB898.6 million to RMB998.4 million, implying roughly flat to 10% year-over-year decline.
Yatsen (NYSE:YSG) reported second-quarter 2026 revenue growth of 5.1% as continued strength in its skincare portfolio offset a sharp decline in color cosmetics sales, while higher inventory provisions and increased marketing spending widened the company's losses.
#profitability #offset
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