How low can it go? Beleagured Avon Products Inc, still can't find the bottom. Today, the company reported a 40% decline in quarterly profits ($91 million) on a 13% decline in revenue ($2.19 billion). Avon blamed increased competition in key markets such as Latin America and the US.
"As anticipated, our second-quarter results were tough. While Avon's turnaround remains challenging, we are putting the people and processes in place to lay the foundation for returning Avon to sustainable, profitable growth," said Sheri McCoy, chief executive officer of Avon Products, Inc. "As we move to the second half of the year, we continue to expect improved performance."
Sales in North America dropped 20% to $304 million. Sales in Latin America fell 16% to $1.05 billion. Sales in Europe, Middle East and Africa fell 3% to $658 million and sales in Asia-Pacific declined 13% to $172 million.
For the six months, Avon's sales fell 12% to just under $4.3 billion.