Avon suffers 6% revenue slump in 2013

Direct selling giant Avon has reported a drop in both Q4 and full year 2013 revenue. In the fourth quarter, revenue dropped by 10% to $2.7bn. Total units also declined by 10%, while the number of active representatives was down 5% on the same period in 2012. Avon's total revenue for 2013 was $10bn, down 6% on 2012. Total units were down 5% on the prior year and representatives were down by 2%. For the full year, total beauty sales declined 7%.

Avon's fourth quarter 2013 performance in North America was particularly hard hit; its beauty sales in the region declined 25%, driven by skin care and personal care.

Commenting on the results, Sheri McCoy, CEO of Avon Products, remained upbeat. “Looking back at 2013, we made progress addressing tough legacy issues, identifying and beginning to resolve operational challenges, and rebuilding our management team,” she said. “Although the second half of the year was impacted by both execution and macro-economic factors, I'm pleased that we are making headway toward our financial goals and Avon's return to profitable growth. While much work remains to be done, we continue to make progress toward building a better, simpler and more stable business."