BRIEF: Yatsen’s revenue rises 37% as color cosmetics return to growth
Cosmetics retailer Yatsen Holding Ltd. (YSG.US) said on Thursday its revenue rose 36.8% in the second quarter year-on-year to 1.09 billion yuan ($152 million), as a return to growth for its color cosmetics complemented stronger growth for its skincare products.
Yatsen said sales for its skincare products reached 581 million yuan during the quarter, up 78.7% from 325 million yuan a year earlier. Color cosmetic sales rose 8.8% during the period, returning to growth after falling 10% in the first quarter. The faster growth for skincare products propelled that segment to a majority 53% of Yatsen’s total revenue during the quarter, overtaking color cosmetics.
The company forecast the revenue growth rate would slow in the third quarter to between 15% and 30%, forecasting revenue of 778.6 million yuan to 880.1 million yuan for the period.
Its loss for the second quarter narrowed to 19.5 million yuan from 85.5 million yuan a year earlier. It was profitable during the second quarter on an adjusted basis, reporting non-GAAP income of 11.5 million yuan for the period.
Yatsen’s shares rose 0.6% to $9.60 on Thursday after the report came out. The stock is up about 130% year-to-date.
By Doug Young
To subscribe to Bamboo Works weekly free newsletter, click here
