For the third quarter, total revenue was $2.6 billion, down 8%. Total units grew 1% and price/mix was flat during the quarter. Active representatives were down 1%, according to the firm.
Avon Beauty sales declined 9%, or flat in constant dollars. On a reported basis, fragrance was down 7%, color and skin care both declined 11%, and personal care was down 9%. On a constant-dollar basis, fragrance increased 2% while color and skincare declined 1% and 3%, respectively. Personal care was flat, the company said.
Yet, in her statement, McCoy pointed to a positive: “However, we have identified the first critical actions to return Avon to a position of financial health and improve our competitive position.With a clear focus on growing the top-line, managing costs, and improving our working capital, I am confident that we are moving Avon toward a steady recovery.”
According to the company, management is focused on stabilizing the business and returning Avon to sustainable growth and has set financial goals of mid single-digit constant-dollar revenue growth and a low double-digit operating margin over the next three years, the company said.
In addition, Avon said management has the team fully aligned around actions that will accelerate top-line growth, reduce costs and improve working capital. Management is also targeting cost savings of at least $400 million by the end of the three years to be largely driven by a reduction in selling, general and administrative expenses, according to the company. Avon also expects that there will be charges associated with the achievement of these goals.