Yatsen Q2 Revenue Rises 5% but Swings to Loss; Q3 Guidance Down 0-10%
YSG sits 16% above its 52-week low of $2.15 on light trading volume (0.4× avg).
Summary
Yatsen's Q2 revenue grew 5.1% to RMB 1.14 bln, driven by 40.4% skincare growth, but the company swung to an adjusted net loss of RMB 99.4 mln from a profit a year ago. Gross margin fell to 73.9% on higher inventory provisions tied to portfolio streamlining. Q3 guidance of RMB 898.6-998.4 mln implies a 0-10% YoY decline, signaling continued pressure in color cosmetics. The loss and weak outlook contrast with the Sephora China partnership announced in July, which has yet to offset structural headwinds.
At the time of this announcement, YSG was trading at $2.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $258.1M. The 52-week trading range was $2.15 to $10.70. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.