Avon Q2
This article was originally published in The Rose Sheet
Executive Summary
Net revenue rose a lower-than-expected 6% to $1.9 bil. in the second quarter, impacted by decreasing beauty boutique sales in China and lower-than-anticipated growth in Central and Eastern Europe, firm reports during July 19 earnings call. Avon expected a 30% increase in China, but sales in the region fell 19% due to concerns of boutique owners over the resumption of direct selling, according to CEO Andrea Jung. Net income was up 41% to $28.6 mil., Avon adds. North American and U.S. sales declined 4% and 6% to $617.8 mil. and $527.6 mil., respectively. However, Avon will continue to support its brands in North America with a 50% increase in advertising spend, primarily to support new skin care innovations slated to launch in Q4, firm says...