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/Mis Actual Consensu

s s

Estimate

Q2 RMB 1.09

Revenue bln

Q2 RMB

Adjusted 11.50

Net mln

Income

Q2 Net -RMB

Income 19.50

mln

Q2 Gross 78.3%

Margin

Q2 Gross RMB

Profit 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 ( YSG ) 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:

(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.)