S&E In Brief
This article was originally published in The Rose Sheet
Executive Summary
Avon: Revenue rose 14% to $2.5 bil. in Avon's fiscal 2010 first quarter, while earnings dropped 64% to $42.5 mil., New-York-based direct seller reports April 30. Earnings declines were attributed to restructuring costs and the impact of currency devaluation in Venezuela, as predicted (1"The Rose Sheet" Feb. 8, 2010, In Brief). Avon spent $96 mil. on advertising in the quarter - up 23% from the same period last year - as it focused on sales representative recruitment. Its sales force increased by 6% in the quarter, growing in all regions except for China, firm says. North American revenue slipped 2%, negatively impacted by lower average orders and weakness in non-beauty business. Avon "expects results to vary on a quarterly basis" for 2010 as the firm optimizes its product portfolio and "enhances field fundamentals.
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