Yatsen Holding Limited (YSG) Q2 2024 Earnings Report

Yatsen reported Q2 2024 net revenue of RMB 794.5 million, a 7.5% year‑over‑year decline. Gross profit was RMB 609.4 million and gross margin expanded to 76.7% (up ~200 bps YoY), driven by a higher mix of higher‑margin products. The company recorded an operating loss of RMB 135.2 million and a GAAP net loss of RMB 78.3 million (diluted EPS RMB -0.77). Management cites a softer macro and weaker-than-expected 618 festival as primary drivers of revenue pressure and is prioritizing channel mix optimization and cost efficiency while maintaining brand and R&D investment. Balance sheet liquidity remains a key strength (cash + short‑term investments RMB 1.58 billion) but operating cash outflow widened in the quarter (management reported ~RMB 148.2 million used in operating activities). Management provided Q3 revenue guidance of RMB 646.3–718.1 million (0% to -10% YoY).