Yatsen, the owner of Eve Lom and Perfect Diary, has reported a bumper start to its 2025 financial year.
Total net revenues for the first quarter of 2025 increased to RMB833.5m (US$114.9m), a 7.8% increase from the RMB773.4m reported during the same quarter last year.
This was driven by a standout Q1 for the brand owner’s skin care division, which saw revenues rise by 47.7% to RMB362.4m (US$49.9m).
Eve Lom, Galénic and DR.WU were highlighted as key performers, with the company also benefiting from an increased focus on new product development, R&D and brand building.
The strong demand for skin care helped to offset a 9.9% year-over-year decrease in net revenues from Yatsen’s colour cosmetics arm.
“Despite ongoing softness in the beauty market, we delivered a 7.8% year-over-year increase in total net revenues,” said Jinfeng Huang, founder, Chairman and CEO of Yatsen.
“We remain confident in our ability to execute our strategic transformation plan aimed at sustainable growth, and we look forward to the opportunities that lie ahead for the remainder of the year."
Net loss for the first quarter of 2025 narrowed by 95.5% to RMB5.6m (US$0.8m) from RMB124.9m in 2024.
The positive Q1 has led China’s beauty unicorn to raise its outlook for the second quarter of 2025.
The company now expects its total net revenues to fall between RMB810.4m and RMB889.9m – a year-over-year increase of approximately 2% to 12%.
"We are pleased to report meaningful improvements in both net revenues and loss position for the first quarter of 2025,” added Donghao Yang, Director and CFO of Yatsen.
“Total net revenues grew by 7.8% year over year, and gross margin increased to 79.1%, up from 77.7% for the prior year period.
“With cash and short-term investments of RMB1.28bn, we have sufficient resources to advance our strategic plan going forward."