Yatsen Q1 Earnings Call Highlights

Yatsen (NYSE:YSG) reported first-quarter 2026 gross maturation that absorption said reflected continued momentum successful its skincare portfolio, adjacent arsenic higher selling spending and level postulation costs contributed to wider losses.

The Guangzhou-based quality institution said full nett revenues roseate 22.5% twelvemonth implicit twelvemonth to CNY 1.02 billion, up from CNY 833.5 cardinal successful the prior-year period. Chief Financial Officer and Director Donghao Yang said the summation was chiefly driven by a 58.5% year-over-year emergence successful nett revenues from skincare brands, partially offset by a 5% diminution successful nett revenues from colour cosmetics brands.

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Founder, Chairman and Chief Executive Officer Jinfeng Huang said the results demonstrated “ongoing resilience” successful Yatsen’s multi-brand strategy amid a competitory home quality market. Citing China’s National Bureau of Statistics, Huang said quality retail income grew 5.9% twelvemonth implicit twelvemonth successful the archetypal quarter, portion combined income crossed Tmall, Douyin and JD.com besides roseate astatine a single-digit pace.

Skincare Momentum Drives Revenue Growth

Huang said Yatsen’s strategical displacement toward skincare continued to enactment gross maturation and gross borderline expansion. The company’s gross nett accrued 24.3% twelvemonth implicit twelvemonth to CNY 819.2 million, portion gross borderline roseate to 80.2% from 79.1% a twelvemonth earlier, according to Yang.

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Management highlighted respective merchandise and marque initiatives during the quarter. Huang said Galénic’s caller Couture Révélation Cellulaire Revitalising Cream “was an instant hit” and sold retired soon aft launch. He besides said Dr. Wu expanded its PDRN bid with the Ageversal Sodium DNA Hydroluminous Mask and Ageversal Advanced Rejuvenate Eye Cream, portion different motorboat expanded the portfolio with a Renewal Intensive Treatment for the oculus area.

Huang said Yatsen continued to summation probe and improvement spending arsenic portion of its absorption connected merchandise innovation. R&D expenses roseate to CNY 39.4 cardinal from CNY 22.6 cardinal a twelvemonth earlier, representing 3.9% of full nett revenues versus 2.7% successful the prior-year period. Yang attributed the summation chiefly to higher payroll expenses tied to accrued R&D headcount.