Sales: $7.2 billion for cosmetics, fragrances and toiletries. Corporate sales: $9.9 billion. Net loss: $56 million.
Key Personnel: Sheri McCoy, chief executive officer; Kimberly A. Ross, executive vice president and chief financial officer; Fernando J. Acosta, senior vice president and president, Latin America; Jeff Benjamin, senior vice president, general counsel and chief ethics and compliance officer; Cheryl Heinonen, senior vice president, corporate relations and chief communications officer; Donagh Herlihy, senior vice president, chief information officer and e-commerce; John Higson, senior vice president and president, Europe, Middle East & Africa; Pablo Muñoz, senior vice president and president, North America; Susan Ormiston, senior vice president, human resources and chief human resources officer; Nilesh Patel, senior vice president and president, Asia Pacific; Patricia Perez-Ayala, senior vice president and chief marketing officer and global brand & category president; David Powell, senior vice president, business transformation & global supply chain; Brian Salsberg, senior vice president, global strategy.
Major Products: Color—Avon Makeup Collection; Avon Naturals and Foot Works; Skin Care—Anew, Anew Clinical, Anew Genics, Clearskin Professional and Avon Solutions; Fragrances—Outspoken and Outspoken Intense by Fergie, Derek Jeter Driven and Derek Jeter Black, Hervé Léger Homme, Step into Sexy, Scentini Fragrance Collection, Rare Diamonds, Eternal Magic, Far Away.
New Products: Skin—Anew Reversalist Express Wrinkle Smoother, Anew Reversalist Complete Renewal day lotion broad spectrum SPF 25, Anew Clinical Infinite Lift Targeted Contouring serum; Fragrance—Femme, Luck; Color—AeroVolume mascara, Ulta Color Absolute lipstick, Mega Effects mascara.
Comments: Net losses rose more than 30% and corporate sales fell 6% last year as the company for women continued to lose women representatives. So much so, that Avon changed its performance metric from “Growth in Active Representatives” to “Change in Active Representatives.”
Overall, beauty product sales dropped 7%, due to a 12% decline in skin care product sales. Personal care sales fell 7%, color dropped 6% and fragrance sales declined 4%. By region, sales in Latin America fell 3% to $4.8 billion; Europe, Africa and Middle East revenues fell 1% to nearly $2.9 billion; sales in North America dipped 1% to $1.4 billion and Asia-Pacific sales plunged 16% to about $758 million, due to a 48% sales decline in China.
The bad results have continued in 2014, as first quarter total revenue dropped 11% to $2.2 billion. Beauty sales fell 12% to about $1.5 billion, led by a 14% decline in skin care sales to $645 million, a 9% decline in fragrance sales to $513 million and a 12% decline in color cosmetics sales to $401 million. By region, sales in Latin America fell 7% to $1 billion; sales in Europe, Middle East & Africa dropped 11% to nearly $655 million; North American sales plunged 22% to less than $296 million and sales in Asia Pacific dropped 17% to $166 million.
In April, the company agreed to pay $135 million to settle bribery charges that had appeared in 2008, when Avon reportedly bribed Chinese government officials to gain favors. Avon paid $68 million the US Justice Department and $67 million to the Securities and Exchange Commission.
In May, as Avon’s woes mounted, reports surfaced that the board could consider a sale. With Avon cozying up to Coty to sell some of Coty’s fragrances in Brazil, observers say Coty is one suitor. Another is Tupperware, according to sources. The company’s stock price has fallen from a 52-week high of nearly $25 a share to less than $15 a share in mid-June.