THE WHAT? Yatsen has announced its unaudited results for the third quarter of 2023. The Chinese beauty firm saw revenue fall 16.3 percent versus the prior-year period to RMB718.1 million, which it attributed primarily to its colour cosmetics brands.
THE DETAILS Net loss decreased by 6.1 percent to RMB197.9 million versus RMB210.7 million a year ago and gross margin stood at 71.4 percent, compared with Q3 2022’s 68.9 percent.
The group also announced the upsizing and extension of its share repurchase program, increasing the aggregate value of shares that may be repurchased under the program from US$150 million to US$200 million.
THE WHY? Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, explains, “China’s beauty industry continued to recover modestly in the third quarter. Amid uncertainties in consumer demand, we remained focused on building strong brand equity based on superior product performance and consumer satisfaction. Our clinical and premium skincare brands, including Galénic, DR.WU and Eve Lom, recorded growth in combined net revenues for another quarter. Meanwhile, we upgraded Perfect Diary through a series of campaigns to reposition the brand with a refreshed visual identity and new product launches. Looking ahead, we will continue to adapt flexibly and proceed with our strategic transformation.”