Sales & Earnings In Brief
This article was originally published in The Rose Sheet
Executive Summary
Avon: Direct seller is taking aggressive steps to mitigate a 65% decline in second quarter profit, CEO Andrea Jung told analysts during a July 30 earnings call. For the quarter, net income was $83 mil., negatively impacted by restructuring charges and currency fluctuations, firm reported. Avon recently announced it was taking a $90 million charge in the second quarter to fund its 2009 restructuring plan, which includes the elimination of 1,200 positions (1"The Rose Sheet" July 27, 2009, In Brief). During the period, firm's active representatives base grew by 11%. "We're committed to bold and speedy actions to ensure that we drive margin expansion over the longer term," Jung said. The exec anticipates potential easing of currency issues in the back half of the year. Total revenue for the period declined 10% to $2.5 bil., but grew 5% on a local-currency basis. On a reported basis, fragrance and color cosmetics declined 9%, personal care fell 10% and skin care revenues were down 12%