Sales: $4.1 billion for cosmetics, fragrances and toiletries.
Corporate sales: $5.7 billion.
Key Personnel: Sheri McCoy, chief executive officer; Jamie Wilson, executive vice president, chief financial officer; James S. Scully, executive vice president, chief operating officer; Fernando J. Acosta, executive vice president, chief marketing and social selling officer; Jeff Benjamin, senior vice president, general counsel and chief ethics & compliance officer; John Higson, executive vice president, chief commercial officer; Susan Ormiston, senior vice president, human resources and chief human resources officer.
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: Anew Ultimate Supreme Advanced Performance Créme, Anew Vitale Visible Perfection Blurring Treatment, Big & Multiplied Volume mascara, Avon True Perfectly Matte lipstick, Avon Life for Him and for Her fragrances, Far Away Infinity fragrance, Avon Nutra Effects body collection with Active Seed Complex.
Comments: 2016 was a big year at Avon Products. The company separated its North American business (New Avon) and moved its commercial operations outside the US and its headquarters to London. Therefore, this time next year, look for Avon Products in Happi’s International Top 30. Company executives insist all these moves are not akin to moving deck chairs on the Titanic.
Avon Products is making progress, insists CEO Sheri McCoy, but the numbers are still falling. Corporate and beauty sales declined 7%. By category, skin care sales dropped 7% to $1.6 billion, fragrance sales declined 6% to just over $1.5 billion and sales of color cosmetics dropped 7% to $997 million. Beauty accounted for 74% of sales last year, the same as 2015.
Gains were reported in Argentina, South Africa, Russia, Mexico and Brazil, but overall sales fell in every region. Sales in Europe, Middle East and Africa declined 4% to $2.1 billion. South Latin America sales fell 7% to $2.1 billion and North Latin America sales dropped nearly 8% to about $830 million. Sales in Asia-Pacific declined more than 11% to $556 million.
Avon Products is about halfway through its three-year Transformation Plan, a scheme designed to achieve mid single-digit, constant-dollar revenue growth, and low double-digit operating margin. The plan calls for: investing in growth, reducing costs in an effort to continue to improve cost structure, and improving financial resilience.
This year, Avon is focused on investing in growth, which means media and social selling as well as spending related to service model evolution and information technology.
For the first quarter of 2017, sales rose 2% to $1.3 billion, but the number of active representatives fell 3%. Skin care sales increased 6% and fragrance sales rose 4%. Color, however, declined 2%. Overall, beauty sales were up 3% to $970 million.
On Aug. 1, James Thompson will take over as senior vice president, general counsel and chief ethics and compliance officer. He had been general counsel and secretary to Chiquita Brands International. Thompson succeeds Jeff Benjamin who is retiring.