Yatsen Q1 2023: Sales plummet 14 percent

THE WHAT? Yatsen has announced its unaudited financial results for the first quarter of fiscal 2023. In the three months to March 31, the Chinese beauty group reported sales of RMB765.4 million, down 14.1 percent on the prior-year period.

THE DETAILS Yatsen attributed the decrease to its color cosmetics portfolio, which saw net revenues plummet 29.1 percent yoy. Its Skincare division, meanwhile, delivered a healthy 34.2 percent increase in net revenues.

Gross profit dropped 7.5 percent to RMB568.7 million, while gross margin increased to 74.3 percent from 69 percent in the prior-year period, driven by higher skin care sales and more disciplined pricing, Yatsen said.

THE WHY? Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, stated, “We started 2023 by continuing to execute our new five-year strategic transformation plan, focusing on building a healthy brand portfolio and capitalizing on rising opportunities as the consumer goods industry recovers. For our Skincare Brands, we are committed to increasing brand awareness and developing new products, while improving our current hero products’ market position in their relevant sub-categories. For our Color Cosmetics Brands, we continued to introduce high-quality products and build a more sustainable business model. Additionally, we remained dedicated to strengthening our R&D capabilities as a core strategy for our future growth and product differentiation.”

The post Yatsen Q1 2023: Sales plummet 14 percent appeared first on Global Cosmetics News.

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