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Published
Jul 31, 2015
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Avon sees 17% decline in Q2 revenue

Published
Jul 31, 2015

Cosmetics giant Avon's total revenue fell in the second quarter, the company reported today. Revenue was down 17% to $1.8bn, but was relatively unchanged in constant dollars.

Avon


Active Representatives were down 2% year over year, led by a continued decline in North America, and total units decreased by 4%. There was a 17% fall in beauty sales, but they increased by 1% in constant dollars. Gross margin fell 210 basis points to 60.9% but the operating margin was up 70 basis points to 5%.

Net income in the period was $30 million, or $0.07 per diluted share, compared with $20 million, or $0.04 per diluted share, for the second quarter of 2014.

"Our overall second-quarter performance was in line with our expectations in an environment of extraordinary currency pressure. Market by market, our local teams are operating effectively as they address consumer demands, improve Representative engagement and manage cost," said Sheri McCoy, Chief Executive Officer of Avon Products, Inc. "In addition, given that we anticipate the challenging environment to continue, we have taken steps to improve our financial flexibility."

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