Before the market opened on September 2 (US Eastern Time), the NYSE-listed Chinese beauty brand group "Yatsen E-Commerce" released its unaudited financial results for the second quarter and first half of fiscal year 2026 ended June 30: total net revenue for the second quarter increased 5.1% year-on-year to RMB 1.14 billion. The growth was mainly driven by a 40.4% year-on-year increase in net revenue from skincare brands to RMB 816 million, which offset a 35.8% year-on-year decline in net revenue from makeup brands. Skincare brands' share of total net revenue rose to 71.5% from 53.5% in the same period last year.
Total net revenue for the first half was RMB 2.163 billion, compared with RMB 1.92 billion in the same period last year.
*Yatsen E-Commerce's makeup revenue comes from makeup brands including Perfect Diary, Little Ondine and Pink Bear; skincare revenue comes from Galénic, DR.WU (mainland China business), Eve Lom and other skincare brands.
As of the close on the day the results were released, Yatsen E-Commerce's share price fell 6.3% from the previous day to USD 2.37 per share, and the stock has fallen about 75% over the past year. Its latest market capitalization is approximately USD 220 million.
Huang Jinfeng, founder, chairman and chief executive officer of Yatsen E-Commerce, said: "In the second quarter, the Chinese beauty market showed broad resilience and market growth improved slightly, but intensifying industry competition continued to bring many challenges. Against this backdrop, the company's business remains in a critical stage of strategic transformation. As the brand portfolio and sales channels are further optimized, the skincare business has maintained strong growth momentum and now accounts for more than 70% of total revenue, with efficacy and premium skincare brands such as Galénic, DR.WU and Eve Lom performing notably well.
In contrast, the makeup segment has come under structural pressure due to intensifying industry competition. To address this, we are decisively streamlining our makeup brand portfolio and refocusing resources on high-growth skincare brands. Looking ahead, the company will continue to optimize its product mix and channels, maintain investment in research and development, strengthen its innovation pipeline and achieve sustainable long-term growth."
Other key financial data for Yatsen E-Commerce's second quarter and first half of fiscal year 2026 are as follows:
- Gross profit for the second quarter was RMB 844 million, down 0.8% year-on-year; gross profit for the first half was RMB 1.663 billion, compared with RMB 1.509 billion in the same period last year;
- Gross margin fell to 73.9% from 78.3% in the same period last year, mainly due to the company's proactive optimization of its brand portfolio and streamlining of SKUs, as well as higher inventory write-down provisions in the makeup business;
- Operating loss for the second quarter was RMB 132 million, compared with an operating loss of RMB 55.5 million in the same period last year; operating loss for the first half was RMB 230 million, compared with an operating loss of RMB 89.5 million in the same period last year;
- Net loss for the second quarter was RMB 90.8 million, compared with a net loss of RMB 19.5 million in the same period last year; net loss for the first half was RMB 153 million, compared with a net loss of RMB 25 million in the same period last year;
- Diluted net loss per share (ADS) for the second quarter was RMB 0.97, compared with a diluted net loss per share of RMB 0.19 in the same period last year.
｜Source: Official financial report
｜Image source: Official financial report
｜Editor: LuxeCO
