09.01.15
Avon Products, Inc. posted loses in its second-quarter 2015 results. However, “our overall second-quarter performance was in line with our expectations in an environment of extraordinary currency pressure,” said CEO Sheri McCoy.
“Market by market, our local teams are operating effectively as they address consumer demands, improve representative engagement and manage cost. In addition, given that we anticipate the challenging environment to continue, we have taken steps to improve our financial flexibility,” said McCoy.
Total revenue for Avon Products, Inc. decreased 17% to $1.8 billion, but was relatively unchanged in constant dollars. Constant-dollar revenue benefited from growth in Europe, Middle East & Africa, as well as Latin America, due to markets experiencing high inflation (Venezuela and Argentina), partially offset by a decline in North America.
Active representatives were down 2% year over year, led by a continued decline in North America, partially offset by growth in Europe, Middle East & Africa, most significantly Russia. Average order increased 2%, which benefited from price increases in markets experiencing high inflation.
Total units decreased 4%, driven by declines in Latin America and North America. Price/mix was up 4% during the quarter, aided by pricing in markets experiencing high inflation as well as improved price/mix in Brazil.
Beauty sales declined 17%, but increased 1% in constant dollars. Fashion & home sales declined 14%, but were relatively unchanged in constant dollars.
“Market by market, our local teams are operating effectively as they address consumer demands, improve representative engagement and manage cost. In addition, given that we anticipate the challenging environment to continue, we have taken steps to improve our financial flexibility,” said McCoy.
Total revenue for Avon Products, Inc. decreased 17% to $1.8 billion, but was relatively unchanged in constant dollars. Constant-dollar revenue benefited from growth in Europe, Middle East & Africa, as well as Latin America, due to markets experiencing high inflation (Venezuela and Argentina), partially offset by a decline in North America.
Active representatives were down 2% year over year, led by a continued decline in North America, partially offset by growth in Europe, Middle East & Africa, most significantly Russia. Average order increased 2%, which benefited from price increases in markets experiencing high inflation.
Total units decreased 4%, driven by declines in Latin America and North America. Price/mix was up 4% during the quarter, aided by pricing in markets experiencing high inflation as well as improved price/mix in Brazil.
Beauty sales declined 17%, but increased 1% in constant dollars. Fashion & home sales declined 14%, but were relatively unchanged in constant dollars.