Chinese Beauty Unicorn Yatsen Reports 72% Revenue Growth

Yatsen, which celebrated its IPO in the fourth quarter, reported growing revenue and mounting losses for 2020.
Mar. 12, 2021 05:43
Chinese Beauty Unicorn Yatsen Reports 72% Revenue Growth

Yatsen Holding Ltd. (NYSE: YSG) delivered mixed financial results for the fourth quarter and full-year of 2020.

The Guangzhou-based retailer of beauty products booked $300.6 million in revenue for the quarter – an increase of 72% year-over-year. Net loss, it said, was $234.7 million in contrast to a net income of $7.11 million in the fourth quarter of 2019.

For the full year of 2020, Yatsen reported $802 million in revenue and losses of $412 million.

Yatsen noted an increase in the number of customers. Jinfeng Huang, the founder, chairman and chief executive officer of Yatsen, stated, "The growing popularity of homegrown Chinese beauty brands is presenting us with unprecedented opportunities that we are well-positioned to capture."

Huang said the company aims to offer a full suite of products to customers through the acquisition of several distinct skincare brands and cooperation. "We continue to focus on innovation and quality, our efforts in expanding our offline experience stores will create even greater value for our customers and spur stronger brand engagement and loyalty," Huang added.

Yatsen expects to generate net revenues of between 1.37 billion yuan and 1.42 billion yuan in the first quarter of 2021, representing year-over-year growth of up to 40%.

The company completed its initial public offering on the New York Stock Exchange on November 19, 2020. The total proceeds from the IPO were $709.4 million, it said.

Yatsen sells via offline stores, its online platform, other online retail channels, and social networks. The company's brands include Perfect Diary, Little Ondine, Abby's Choice and Galénic.

Shares of Yatsen ended at $16.45 apiece Thursday in New York, 4 cents lower from yesterday's close.