Yatsen Continues to Deliver Strong Skincare Growth Amid Challenging Industry Backdrop
In a resilient market backdrop, Yatsen has reported continued growth in its skincare portfolio during the second quarter of 2026. Despite the challenges facing the beauty industry, the company's total net revenues increased by 5.1% year-over-year, driven primarily by the sustained momentum of its skincare brands.
As noted by Jinfeng Huang, founder and CEO of Yatsen, "While overall growth was more moderate than our prior expectations, our skincare portfolio delivered exceptional performance, reinforcing the effectiveness of our strategy transformation." The company's skincare portfolio grew 40.4% year-over-year in the second quarter, now representing 71.5% of total net revenues.
The continued strength of Yatsen's skincare brands further underscores its shift toward higher quality and more sustainable growth. At the heart of this strategy is a deep understanding of consumer needs and a strong commitment to delivering superior consumer experience.
"We remain focused on creating meaningful long-term value through both the products we offer and the emotional connections we build with consumers," Huang emphasized. This approach has been successful, as evidenced by the company's recent recognition as a national high-tech enterprise and its receipt of specialized, sophisticated, distinctive, and innovative designation in Shanghai.
Yatsen also made significant progress in advancing innovation on a strong scientific foundation during the quarter. The company maintained R&D expenses at 3.2% of total net revenues, further emphasizing its commitment to research and development.
The resilience of the beauty industry has been demonstrated by growth in beauty retail sales, which increased by 6.6% year-over-year in the second quarter of 2026. Despite these positive indicators, the competitive landscape remains challenging for leading participants in the domestic beauty industry.
Yatsen's performance is particularly noteworthy given the deceleration or revenue declines experienced by many other companies during the quarter. The company's ability to maintain growth and achieve significant milestones underscores its position as a leader in the skincare segment.
