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Avon Q4

This article was originally published in The Rose Sheet

Executive Summary

Direct seller's net beauty sales grew 15% in the fourth quarter to $2.2 bil., driving overall 13% jump in revenue to $3.2 bil., company reported Feb. 4. Net income for the quarter grew 16% to $269.4 mil. On a regional basis, due largely to favorable currency valuations, revenue in the quarter climbed in Latin America; Central and Eastern Europe; Western Europe, Middle East and Africa; and Asia-Pacific. However, revenue declined in China (8%) and North America (7%), the latter impacted by lower consumer spending and double-digit declines in sales in the fashion and home categories. CFO Charles Cramb noted during a Feb. 4 conference call with investors that the recent devaluation of Venezuela's currency will have an $85 mil. unfavorable impact on the company's operating profit in 2010. For full-year 2009, revenue dipped 3% to $10.3 bil. and profit tumbled 29% to $625.8 mil

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