Avon Q2 results ‘in line with expectations’
Sales remain sluggish
Avon has reported second quarter 2011 total revenue of $2.9bn, an increase of 9% on the second quarter in 2010. In constant dollar terms, sales were up just 2%, as foreign exchange contributed to 7% of the growth. Total units dropped 3% while price/mix rose 5% during the period.
The company’s beauty sales increased 1% year on year in constant dollars, with fragrance and personal care up 4%, colour remaining flat and skin care dropping 4%.
“Our results were in line with our expectations of low-single digit constant-dollar growth and adjusted margins flat with a year ago,” commented Avon chairman and ceo, Andrea Jung. “We continue to expect mid-single digit revenue growth in the second half of the year, driven by our major global field activation program around our 125th anniversary. We also continue to expect significant margin expansion in the second half, resulting from gross margin improvement and revenue leverage.”