Avon
This article was originally published in The Rose Sheet
Executive Summary
Direct-seller raises its earnings guidance for Q2 and full-year 2004 in light of "significant reduction" in firm's effective tax rate, which is expected to fall from 35% to approximately 31%, Avon announces June 8. Firm anticipates Q2 earnings per share will be up 28% to $.46, $.03 higher than previous guidance. Full-year EPS growth is projected to be $1.70 a share, up 22% versus 2003, and $.05 above prior expectations. Second quarter sales are expected to increase 12% in dollars and 11% in local currencies compared to the year-ago period, fueled by an expected 14% increase in beauty sales. Operating profit likely will rise 14% during the quarter, firm adds. U.S. sales are forecast to grow 4% in Q2, driven by 6% growth in beauty sales and 3% increase in the number of active representatives...