Avon Products : Revenue Hurt by Strong Dollar
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07/30/2015 | 08:45am US/Eastern
Avon Products Inc. on Thursday said its revenue fell 17% despite earnings growth for its latest quarter as the company continues to struggle with the negative effects of the strong dollar.
The results come as the cosmetics empire, one of the biggest direct sellers of beauty products, has struggled with identity issues and weakness in North America.
Like other retailers, the beauty-products company has been hurt by the negative effects of the strong dollar, which Chief Executive Sheri McCoy called "extraordinary" in a news release Thursday.
In the June quarter, beauty sales fell 17%, but increased 1% in constant dollars, while fashion and home sales fell 14%, but was unchanged in constant dollars. Active representatives, a closely watched barometer of future sales, fell 2%, led by a continued decline in North America, though there was growth in Europe.
In the struggling North American sector, sales dropped 15%. In that division, sales have fallen for over half a decade. Sales fell 19% in Latin America, 16% in EMEA, and 8% in Asia Pacific.
In all, Avon's profit grew 52% to $28.8 million, or 7 cents a share, up from $19 million, or 4 cents a share, a year earlier.
Excluding special items such as restructuring costs, per-share earnings fell to 11 cents from 20 cents in the year-earlier period.
Revenue decreased to $1.82 billion from $2.19 billion, but was relatively unchanged when not taking into account currency fluctuations.
Analysts polled by Thomson Reuters had expected earnings of 8 cents a share on revenue of $1.8 billion.
Shares, inactive premarket, have fallen about 43% this year through Wednesday's close.
Così a vedere sembra che abbiano risolto il problema del debito sui bond della holding, ma anche quei pezzi di m. di Seat avevano dato la stessa impressione dopo aver falciato il Lighthouse.
