Avon Products, Inc. CEO Sheri McCoy has described the third quarter of 2013 as “tough”. For the quarter, total revenue was $2.3bn, a dip of 7%, or 1% in constant dollars on the third quarter of 2012. Constant dollar revenue, however, was favourably impacted by approximately one point as a result of the recognition of tax credits of $22m, associated with a change in estimate of expected recoveries of VAT in Brazil. Total units decreased 7% while the number of Avon's Active Representatives was down 3%.
The company's Beauty segment fared especially badly, declining 9%, or 2% in constant dollars, while Fashion & Home declined just 7%, or 2% in constant dollars.
“The third quarter was tough,” noted McCoy. “Our quarterly performance was negatively impacted by macroeconomic headwinds and continued weakness in some parts of our business, particularly North America.”
In North America, Avon's Beauty business sales declined 20%, driven primarily by skin care and fragrance, said the company.
However, McCoy added: “Overall, Avon is headed in the right direction; parts of our business are stabilising and we are making progress toward our three year financial goals.”
