Sales & Earnings In Brief
This article was originally published in The Rose Sheet
Executive Summary
Avon: Company says its "turnaround continues to gain traction," as investments in advertising and field personnel contribute to 14% growth in beauty sales to $1.65 bil. for fiscal 2007 second quarter and a 9% increase in active representatives, according to July 31 release. Within its beauty segment, the firm recorded increased sales of fragrance (up 21%), personal care (up 19%), color cosmetics (up 16%) and skin care (up 4%). Given the success of its renewed promotional effort to date, Avon is upping its full-year advertising spend to $375 mil. - 50% more than that allocated for 2006; its earlier plan was to increase advertising investment levels by 35%, Chair and CEO Andrea Jung notes. Revenue in North America was flat for the quarter, the average size of an order declining versus the prior-year quarter "primarily due to last year's strong product innovation in the skin-care category," including the debut of firm's Anew Clinical Eye Lift. Double-digit gains were posted in Latin America, Central and Eastern Europe, and Western Europe, Middle East and Africa, as well as in China, where Avon continues to expand its direct-selling business (1"The Rose Sheet" Dec. 18, 2006, In Brief). Total Q2 revenue climbed 12% to $2.3 bil...
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