Avon Sees Q2 Rise in All Categories

Avon Products, Inc. reported second-quarter 2011 total revenue of $2.9 billion—9% higher than last year. Total units declined 3%, while price/mix rose 5% during the quarter. Active representatives were flat.

“Our first-half 2011 results were in line with our expectations of low-single digit constant-dollar growth and adjusted operating margins flat with a year ago,” said Andrea Jung, Avon’s chairman and chief executive officer. “We continue to expect mid-single digit revenue growth in the second half of this year, driven by our major global field activation program around our 125th anniversary. We also continue to expect significant margin expansion in the second half, resulting from gross margin improvement and revenue leverage.”

Avon’s beauty sales increased 8%. On a reported basis, fragrance and personal care increased 11%, color rose 8% and skin care grew 3%.

However, second-quarter 2011 revenue in North America was down 7%, according to Avon. Latin America’s revenue was up 19% year over year, with continued strong growth in most large markets.


In Central & Eastern Europe, second-quarter revenue was up 5%. Western Europe, Middle East & Africa’s revenue increased 13%. Asia Pacific reported a decline of 5%, said the company.