Diluted earnings per share from continuing operations of $0.07 improved $1.58 per share versus the same period last year. Adjusted diluted earnings per share from continuing operations of $0.02 improved $0.13 per share versus the same period last year. Foreign currency negatively impacted both diluted earnings per share and adjusted diluted earnings per share by an estimated $0.03 per share, driven by the strength of the US dollar against the currencies of the countries in which it operates, according to the company.
"Avon's third-quarter results reflect broad-based performance improvements resulting in local currency sales growth across our top markets and significant operating margin expansion versus the prior year," said Sheri McCoy, CEO of Avon Products, Inc. "We have also taken actions to significantly improve our balance sheet and have accelerated the pace of our 2016 cost savings initiatives. I am pleased with our progress against the Transformation Plan as we continue to position Avon to deliver sustained long-term profitable growth."
Total revenue for Avon Products, Inc. declined 2% to $1.4 billion, but increased 4% in constant dollars. Avon said total revenue from reportable segments declined 2% to $1.4 billion, but increased 4% in constant dollars.
Active representatives were relatively unchanged year-over-year, as increases in South Latin America and Europe, Middle East & Africa were offset by declines in Asia Pacific.
Average order increased 4% due to growth in all reportable segments, the firm said.
Ending representatives improved 1% due to growth in Europe, Middle East and Africa and South Latin America, partially offset by declines in Asia Pacific.
Europe, Middle East and Africa revenue was down 4%, or up 2% in constant dollars. Constant-dollar revenue was driven by growth in active representatives and average order.
Russia revenue was down 2%, or up 2% in constant dollars, primarily driven by an increase in active representatives, partially offset by lower average order.
UK revenue was down 14%, or up 1% in constant dollars, as higher average order was partially offset by a decrease in active representatives.
South Latin America revenue was up 4%, or 9% in constant dollars, due to higher average order and an increase in Active Representatives. Constant-dollar revenue was negatively impacted by an estimated 2 points due to MVA taxes in Brazil, which are additional VAT-like state taxes that went into effect in various jurisdictions in Brazil in late 2015. Argentina contributed approximately 5 points to this constant-dollar revenue growth, primarily due to inflationary pricing, according to the company.
Brazil revenue was up 14%, or 6% in constant dollars, driven by increases in active representatives and average order.
North Latin America revenue was down 6%, or up 3% in constant dollars. Constant-dollar revenue benefited from higher average order. Mexico revenue was down 5%, or up 9% in constant dollars, primarily driven by higher average order and an increase in active representatives.
Asia Pacific revenue was down 9%, or 7% in constant dollars due to declines in most markets. The segment's constant-dollar revenue decline was driven by a decrease in active representatives, partially offset by higher average order.
Philippines revenue decreased 2%, or was relatively unchanged in constant dollars.