Yatsen (NYSE:YSG) reported first-quarter 2026 revenue growth that management said reflected continued momentum in its skincare portfolio, even as higher marketing spending and platform traffic costs contributed to wider losses.
The Guangzhou-based beauty company said total net revenues rose 22.5% year over year to CNY 1.02 billion, up from CNY 833.5 million in the prior-year period
Chief Financial Officer and Director Donghao Yang said the increase was primarily driven by a 58.5% year-over-year rise in net revenues from skincare brands, partially offset by a 5% decline in net revenues from color cosmetics brands. Founder, Chairman and Chief Executive Officer Jinfeng Huang said the results demonstrated “ongoing resilience” in Yatsen’s multi-brand strategy amid a competitive domestic beauty market. Citing China’s National Bureau of Statistics, Huang said beauty retail sales grew 5.9% year over year in the first quarter, while combined sales across Tmall, Douyin and JD.com also rose at a single-digit pace.
Skincare Momentum Drives Revenue Growth Huang said Yatsen’s strategic shift toward skincare continued to support revenue growth and gross margin expansion. The company’s gross profit increased 24.3% year over year to CNY 819.2 million, while gross margin rose to 80.2% from 79.1% a year earlier, according to Yang. Management highlighted several product and brand initiatives during the quarter.