Breaking News

Not a Pretty Quarter for Avon

January 23, 2013

“Avon’s third-quarter results remain disappointing,” said Sheri McCoy, CEO, on release of the company’s performance. “The challenges that Avon faces developed over time, not overnight, and it will take time to implement solutions as well.”

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.
  • Fit for Fitness

    Fit for Fitness

    Christine Esposito, Associate Editor||February 21, 2017
    Kinx Active is a new brand targeting women who want beauty products that can stand up to their fitness routines.

  • Cargo Says Aloha To Spring/Summer

    Cargo Says Aloha To Spring/Summer

    Christine Esposito, Associate Editor||February 13, 2017
    Cargo Cosmetics has rolled out its new Spring/Summer collection with Hawiianan singer Anuhea.

  • Cashing In on Coconuts

    Cashing In on Coconuts

    Melissa Meisel, Associate Editor||February 6, 2017
    Organic to Green is making waves for its new oils and eco-friendly packaging.

  • Trade Association Directory 2017

    February 2, 2017
    Contact details of trade associations that serve various segments of our industry and are mentioned frequently in Happi.

  • What the Halal  Is Going On?

    What the Halal Is Going On?

    Imogen Matthews , In-Cosmetics||February 2, 2017
    Demand for these beauty products is surging thanks to a fastgrowing Muslim population.

  • Relief for Sensitive Scalps

    Relief for Sensitive Scalps

    Guadalupe Pellon and Annette Mehling , BASF||February 2, 2017
    BASF researchers detail the attributes of the company’s highly effective hair care system focusing on scalp sensitivity.