It was another set of disappointing results for Avon in its latest statement. The company’s Q4 revenue slid 12% to $2.3bn, while total units fell 3%. Price/mix was up 8%.
And its workforce took a hit too – active Avon representatives were seen to drop, down 4%, although it seems those buying were stocking up on more, with average order increasing 9%. Looking at beauty specifically, sales declined a hefty 14%, but increased 5% in constant dollars.
The company also announced its full-year 2014 results. Total revenue declined 11% to $8.9bn, while total units decreased 5%. Price/mix was up 5%. Overall, Avon representatives were down 5%, although average order grew 5%.
Staying positive, Sheri McCoy, Chief Executive Officer of Avon Products, said: “While progress against our financial goals in 2014 was slower than I would have liked, I am pleased with the sequential improvements we made in several key markets and categories in the second half of the year. We have stronger management teams across our key markets and better discipline in executing consistently against Avon's core processes.”
Looking ahead, she added: “Going into 2015, we intend to build on that momentum. However, based on strengthening of the US dollar, we expect the impact of foreign currency on our reported results to be significant. We are working to mitigate as much of the impact as possible. Avon has weathered emerging market cycles in the past and I’m confident we will do so again.”
