Breaking News

Second Quarter Looking Good at Avon

July 30, 2008

Total revenue up 17%, beauty sales jump 19%

Avon Products, Inc. reported that second-quarter 2008 total revenue grew 17% to $2.7 billion. Sales of beauty products rose 19%. Active representatives increased 7%, and units sold were up 5% versus the prior-year quarter. According to the company, all six operating regions contributed to the growth in each of these measures.

Operating profit doubled to $374 million from $187 million, while  net income leaped 60% to $236 million.

The company's 19% growth in beauty sales included increases in all categories: color was up 26%, fragrance grew 17%, skin care increased 15% and personal care rose 17%.

Beauty sales benefited in part from a year-over-year 10% increase in advertising expense to $103 million, according to the company. Advertising supported the launch of new products, such as Pro-to-Go Lipstick and Anew Ultimate Eye Contouring System as well as representative recruitment advertising in priority markets. Additionally, 2008's second quarter included an incremental $16 million of costs for initiatives to improve the Representative Value Proposition (RVP).

blog comments powered by Disqus
  • Free and Clear

    Free and Clear

    Melissa Meisel, Associate Editor||October 17, 2016
    OY-L aims for zero-chemical skin care.

  • Coming Clean on a Host of Issues

    October 17, 2016
    Cleaning Products Conference is set for Nov. 9-11, 2016 in Washington DC.

  • Let the Magic Begin!

    Let the Magic Begin!

    Tom Branna, Editorial Director||October 10, 2016
    IFSCC Congress gets underway at Walt Disney World this month.

  • Change Is in the Air

    Change Is in the Air

    Doreen Wang, BrandZ ||October 3, 2016
    Technology is changing the personal care market

  • Skin Care of One’s Own

    Skin Care of One’s Own

    Christine Esposito, Associate Editor||October 3, 2016
    Nu Skin’s ageLOC Me—which melds the worlds of smart-phone technology, efficacious ingredients and personalization

  • Proof Positive

    Proof Positive

    Christine Esposito, Associate Editor||October 3, 2016
    Testing service providers enable companies to back up their claims and stay in compliance with regulations.