Avon reports 'unsatisfactory' results as new CEO announces Q1 net loss

The direct selling beauty brand appointed Jan Zijderveld as its new CEO in February

Avon's Viva La Vida campaign

Direct selling beauty brand Avon has announced an ‘unsatisfactory’ Q1 2018 figures, with a net loss of US$21m.

The UK-headquartered firm also reported that its active sales representatives – crucial to Avon’s business model – was down by 4%.

The decline was been attributed to a drop in numbers in Latin America, Russia, UK and Malaysia.

“Avon's first-quarter results were unsatisfactory and do not represent the underlying potential of the business,” said Jan Zijderveld, new CEO of Avon.

He officially took the helm from Sheri McCoy in February, after she failed to turnaround disappointing figures.

Zijderveld, said: “During my first 90 days, I have been deeply engaged in a comprehensive review of the company's operations, including on-the-ground visits to many of our top markets where I have met with many of our direct selling representatives."

Meanwhile, Avon’s total revenues rose by 2% to $1.4bn, surpassing analysts expectations of $1.36m.

Revenues in the EMEA was up by 2% and South Latin America increased by 4%.

However, in Asia Pacific and North Latin America revenues were down by 3%.

Avon announced last month that it intended to pull out of the Australian market, in turn axing more than 21,000 jobs.

"While we are focused on the formulation of Avon's longer-term plans, we are already implementing near-term fixes that support the success and satisfaction of our representatives--starting with actions to improve service delivery, “ added Zijderveld.

“Our long-term mission is clear, to return Avon to a competitive market position and we are moving with deliberate urgency to design our turnaround plan."

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