Avon Reports Record Third Quarter Results

Avon Products, Inc. reported record sales in the third quarter of 2001, despite slowing economic growth and currency volatility in the quarter. Sales rose 6% to a record $1.41 billion, compared to $1.34 billion in the third quarter of 2000. Sales were up 12%

“We are extremely pleased with Avon’s performance in the quarter, especially on top of the very strong results in the third quarter of last year, and against the background of economic weakness in some parts of the world and the tragic events of September 11,” said Andrea Jung, Avon’s chairman and chief executive officer. “The improvements in the quarter were broad-based, with all geographic regions performing in line with expectations,” she said.

Ms. Jung added that business in U.S., Avon’s largest market, was effected by the events on Sept. 11, however representative activity levels have essentially normalized. For the fourth quarter, executives predict sales growth in the mid-single digits.

“Our year-to-date results and the underlying strength of our business give us confidence that Avon’s direct selling business model will continue to be a major competitive advantage going forward,” Ms. Jung insisted. “We also recognize that the unprecedented level of uncertainty on a number of external fronts could affect future results. Despite these challenges, we expect to deliver another year of double-digit earnings growth in 2001, which we believe would be an outstanding performance in relation to other consumer companies,” Ms. Jung added.