Eve Lom owner sees sales drop in Q3
Yatsen Holding Limited, the owner of Eve Lom, has reported a 36.1% drop in revenue to £101.2 million (RMB857.9 million) for the third quarter ending 30 September 2022.
This decrease was attributed to a 48.8% drop in revenue from the company's colour cosmetics brands, partially offset by revenue growth from its skincare brands.
The skincare brands division saw revenue increase 33% to £31.8 million (RMB269.4 million), making up 31.4% of total group revenue.
Gross profit decreased 35.2% to £69.8 million (RMB591.3 million), whilst gross margin increased to 68.9% from 67.9% previously. This was driven by increasing sales of higher-gross margin products, cost optimisation, and stricter pricing/discount policies across all brand portfolios.
The company's net loss decreased 41.7% to £24.8 million (RMB210.7 million), compared to from £42.7 million (RMB361.8 million) in 2021.
For the fourth quarter of 2022, Yatsen Holding Limited expects total revenue to be between £108.2 million (RMB916.7 million) and £126 million (RMB1.07 billion), representing a decline of approximately 30% to 40%. This reflects the company's current and preliminary views on the market and operational conditions.
Jinfeng Huang, Founder, Chairman and CEO of Yatsen Holding Limited, said: "We started the year with a new five-year strategic development plan to drive our long-term and sustainable growth. In the third quarter of 2022, we remained focused on building our brands, elevating operational efficiency, and investing in R&D.
"Our third quarter results illustrate Yatsen's growth potential and the resilience of our business model. We have taken steps to optimise the revenue mix and embed structural efficiency into our operations, enhancing our ability to deliver on our strategic targets. As a result, we have seen continued sequential improvements."