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Sales Fall Again at Avon

February 16, 2017

Results drop 7% to $5.7 billion.

Executives at Avon Products insist the company is changing for the better, but its Transformation Plan hasn't provided a lift to the top line. Sales fell 7% to $5.7 billion last year, but the company also noted that sales actually increased 2% in constant dollars. Avon reported a net loss of $107 million. Active Representatives and Ending Representatives declined 1% during the year.

"We made good progress in the first year of our Transformation Plan, exceeding our cost savings targets, improving our profit margin, and significantly strengthening our balance sheet. However, the financial results for the fourth quarter were disappointing, largely due to the decline in Active Representatives and an unexpected increase in bad debt expense," said CEO Sheri McCoy. "As we move into 2017, we are taking actions to deliver more consistent performance across our markets, with Representative engagement remaining a key priority in our growth plan, while navigating continued challenging global economic and political headwinds."

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