Yatsen Holding Limited (NYSE:YSG) Q3 2024 Earnings Call Transcript November 20, 2024 7:30 AM ET

Company Participants

Irene Lyu - VP, Head of Strategic Investment and Capital Markets
Jinfeng Huang - Founder, Chairman, and CEO
Donghao Yang - CFO and Director

Conference Call Participants

Maggie Huang - CICC

Operator

Ladies and gentlemen, good day, and welcome to the Yatsen Third Quarter 2024 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Irene Lyu, Vice President, Head of Strategic Investment and Capital Markets. Please go ahead.

Irene Lyu

Thank you, operator. Please note that the discussion today will contain forward-looking statements relating to the company's future performance and are intended to qualify for the safe harbor from liabilities as established by the US Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion. A general discussion of the risk factors that could affect Yatsen's business and financial results is included in certain filings of the company with the Securities and Exchange Commission. The company does not undertake any obligation to update this forward-looking information except as required by law.

During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. Please see the earnings release issued earlier today for a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results.

Joining us today on the call from Yatsen's senior management are Mr. Jinfeng Huang, our Founder, Chairman, and CEO; and Mr. Donghao Yang, our CFO and Director. Management will begin with prepared remarks and the call will conclude with the Q&A session. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on Yatsen's Investor Relations website at ir.yatsenglobal.com.

I will now turn the call over to Mr. Jinfeng Huang. Please go ahead, sir.

Jinfeng Huang

Thank you, Irene, and thank you, everyone, for participating in Yatsen's third quarter 2024 earnings conference call today. I will start with a macro overview and our key financial metrics, followed by insights into our strategy and updates on our brands and products.

China's beauty industry faced significant challenges in the third quarter with beauty sales significantly lagging the overall retail market. According to the adjusted data from China's National Bureau of Statistics, total retail sales of consumer goods grew by 2.7% year-over-year for the third quarter, while beauty retail sales declined sharply by 5.5%. Notably, September marked the fourth consecutive months of year-over-year declines in beauty retail sales since June. Online beauty sales were also sluggish in the third quarter. Tmall reported a year-over-year drop in both color cosmetics and skincare sales, while Douyin sustained modest double-digit growth.