Improved Gross Margin
Gross margin for Q3 2024 increased to 75.9% from 71.4% in the prior year period, driven by sales of higher-margin products.
Increase in Skincare Brand Revenue
Net revenues from skincare brands rose by 3.6% year-over-year, with a 10.5% increase in clinical and premium brands such as Galenic, Dr. Wu, and Eve Lom.
Successful Product Launches
The Perfect Diary launched the second-generation Biolip Essence Lipstick, which became the top seller in the lipstick category on Douyin during the first week of October.
Cost Structure Optimization
General and administrative expenses decreased to 12.6% of net revenues from 21.1% in the prior year period, due to a reduction in headcount and lower share-based compensation.
Positive ESG Initiatives
Yatsen maintained its MSCI ESG rating of A, reflecting strong performance in product packaging, waste management, and chemical safety.