Avon Sales Down but Stabilizing

Sheri McCoy, chief executive officer of Avon Products, Inc., said she was “pleased” with the company’s first-quarter 2013 results, but admits there’s much to be done to revitalize sales in the U.S.

“Our first-quarter results reflect continued signs of stabilization, including early progress in our cost reduction efforts. I'm pleased with the performance of our Latin America and Europe, Middle East & Africa regions, particularly in Brazil and Russia. The teams there are focused on ensuring that this performance is sustainable. As for our other markets, there remains work to be done, particularly in the U.S."

For the first quarter of 2013, total revenue of $2.5 billion decreased 4%, but was relatively unchanged in constant dollars. Total units decreased 3% and price/mix increased 3% during the quarter. Active Representatives increased 1%.

Avon Beauty sales declined 5%, or 1% in constant dollars. On a reported basis, fragrance grew 1%, while personal care, color and skin care declined 3%, 6% and 12%, respectively. On a constant-dollar basis, fragrance increased 6% and personal care was unchanged, while color and skin care declined 2% and 9%, respectively.

First-quarter 2013 net loss was $13 million, or a loss of $.03 per share. Adjusted net income was $112 million, or $.26 per share.

More info: www.avoncompany.com