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
  • What's Next for the UK?

    Sarah Boumphrey, Euromonitor International||June 24, 2016
    Euromonitor weighs in on the implications for consumer product companies.

  • Henkel Grabs the Sun

    Henkel Grabs the Sun

    Ian Bell, Euromonitor International||June 24, 2016
    Euromonitor's Ian Bell on the impact the purchase will have on the US detergent industry.

  • To The Max

    To The Max

    Melissa Meisel, Associate Editor||June 20, 2016
    Velvet 59 is on the rise at locations like Ricky’s NYC.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.