THE WHAT? Yatsen Holding has announced its financial results for the third quarter of fiscal 2021. The Chinese beauty company reported total net revenues of RMB1.34 billion for the three months to September 30, 2021, a rise of 6 percent on the prior-year period.
THE DETAILS Gross margin was 67.9 percent compared to 65.7 percent for Q3 2020 and gross sales were up 8.3 percent to RMB1.56 billion.
Yatsen said that it expected net revenues to be down approximately 15 to 20 percent in the fourth quarter, as a result of the prior year period’s high comparison basis and softer-than-expected color cosmetics sales.
The company’s Board of Directors also approved a share repurchase program for US$100 million-worth of shares over the next 24 months.
THE WHY? Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, commented, “Despite a challenging macroeconomic backdrop and soft industry environment for color cosmetics, our topline continued to grow in the third quarter, supported by a significant growth of our skin care brands. Looking ahead, as we embark upon the next phase of our development, we expect to continue shifting our revenue mix towards higher-quality and more profitable growth, underpinned by sustained investments in our brand’s brand equities and R&D. We are confident that despite some short-term pain, our strategic initiatives will allow us to emerge stronger with a clear path to long-term sustainable growth.”