Avon Products Inc. the London-based direct seller of beauty and related products, announced its results for the quarter ended September 30, 2017. Revenue increased 1 percent to $1.4 billion, while Active Representatives and Ending Representatives, both from reportable segments, declined 3 percent and 2 percent, respectively.
“Our third quarter has been a productive period,” said CEO Sheri McCoy. “While we saw mixed results, I am encouraged by the revenue improvement in many of our top 15 markets and the underlying business trends we are beginning to see. Our innovation pipeline is starting to gain traction and we are close to realizing our annual cost reduction milestone. We remain intensely focused on improving our Representative experience, which results in higher engagement and her success. It will take time to fully realize the benefits from our near and long-term initiatives in this highly competitive market, but with the right team in place we are poised to accelerate the pace of our progress.”
Commenting on behalf of the Board, Chan Galbato, non-executive Chairman of Avon Products’ Board of Directors said, “The search for a new Chief Executive Officer for Avon is underway. The Board is pleased with the progress and the strong interest we are receiving.”
Q3 2017 Segment Review (Compared with Q3 2016)
Total Reportable Segment constant-dollar revenue was relatively unchanged, with average order growth offset by Active Representative declines, primarily in Brazil. The company saw constant-dollar revenue improvement in many of its top 15 markets. While these trends are encouraging, there is still a lot of work to be done, particularly in some of its larger markets, which are highly competitive and in various stages of recovery.
Europe, Middle East & Africa revenue was up 1 percent, or down 2 percent in constant dollars, driven by a decrease in Active Representatives. Russia revenue was up 3 percent, or down 6 percent in constant dollars, due to a decrease in Active Representatives, as well as lower average order. U.K. revenue was down 13 percent, or 12 percent in constant dollars, primarily due to a decrease in Active Representatives.
South Latin America revenue was down 1 percent, or relatively unchanged in constant dollars, driven by a decrease in Active Representatives, offset by higher average order. Brazil revenue was down 3 percent, or 5 percent in constant dollars, primarily due to a decrease in Active Representatives, partially offset by higher average order.
North Latin America revenue was up 5 percent, or 2 percent in constant dollars, driven by higher average order and an increase in Active Representatives. Mexico revenue was up 4 percent, or down 1 percent in constant dollars, primarily due to a decline in Active Representatives.
Asia Pacific revenue was down 1 percent, or up 3 percent in constant dollars, primarily due to higher average order. Philippines revenue was up 4 percent, or 12 percent in constant dollars, driven by higher average order and an increase in Active Representatives.
To read the full Avon Q3 2017 financial report, click here.
