With Natura Deal Pending, Avon Sales Dip
Avon Products Inc. posted continued declines for its most recent quarter.
The company posted a 17 percent dip in sales, to $1.18 billion, from $1.4 billion in the prior-year period. Net income was down 6 percent year-over-year, to $106.6 million, from $113.8 million.
The results come as Natura is in the process of taking over Avon, in a deal the companies agreed to in May.
Jan Zijderveld, the chief executive officer of Avon said the company continues to execute its “Open Up” turnaround strategy. “The push and pull strategies that we have spoken about, along with a bigger, on trend stream of innovations, are working together to create significant value,” he said. “As expected, revenues declined as we continued to make sharper choices designed to drive a healthier, more sustainable and more profitable business.”
Avon saw a 4 percent uptick in average representative sales, he said, and the company continues to focus on innovating in the beauty category. Recent launches include collaborations with The Face Shop for a cushion foundation and Chi for a shampoo, as well as Avon Anew Anti Pollution skin care.
In the quarter, Avon active reps dipped 10 percent from the prior-year period, but went up 1 percent from the second quarter, the company said.
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