May 2, 2019
Avon Products revenue miss as sales reps drop for tenth straight quarter
May 2, 2019
Cosmetics maker Avon Products Inc missed first-quarter revenue estimates on Thursday, hurt by lower number of direct sales representatives in Europe, Middle East & Africa and South Latin America.
The company's active representatives declined for the tenth straight quarter and dropped 9 percent, largely driven by declines in Brazil and Russia for the quarter.
The 'Little Black Dress' perfume maker is a direct-selling brand that has sales representatives popularly known as 'Avon Ladies,' who go door-to-door to sell its lipsticks, skincare and other products.
The company, which has been plagued by falling sales, launched its turnaround program 'Open Up Avon' last year to reboot direct selling, while investing in e-commerce and digital capabilities.
Sales in Europe, Middle East and Africa fell 19 percent to $458.7 million (£351.3 million) and 17 percent in South Latin America.
The company's loss widened to $32.7 million, or 9 cents per share, in the first quarter ended March 31 from $20.3 million, or 6 cents per share, a year earlier.
Total revenue fell 15 percent to $1.19 billion and missed analysts' average estimate of $1.24 billion, according to IBES data from Refinitiv.
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