Yatsen Reports Q2 2026 Loss as Skincare Sales Offset Cosmetics Decline

Total net revenues reached RMB 1.14 billion for the period, marking a 5.1% increase year-over-year. This growth was fueled by a 40.4% surge in skincare revenues, which now account for 71.5% of the company's total intake. Premium and clinical brands such as Galénic, DR.WU, and Eve Lom served as the primary drivers of this transition. Conversely, the company's color cosmetics segment—including brands like Perfect Diary and Little Ondine—faced significant structural headwinds, resulting in a 35.8% decline in revenue for that category.

Gross margin narrowed to 73.9% from 78.3% in the prior year, a shift management attributed to higher inventory provisions linked to the ongoing rationalization of the cosmetics portfolio. Operating expenses climbed 7.7% to RMB 975.7 million, largely due to increased marketing investments aimed at bolstering brand equity. Alongside these results, Yatsen announced the appointment of Li Wang as Co-Chief Financial Officer, effective September 2, 2026, as part of a planned leadership transition to support the company's long-term strategic shift.