Avon Products, Inc. announced revenue of $1.18 billion for the third quarter ended September 30, 2019, down 16 percent from $1.4 billion in Q3 2018.
“We continue to execute our Open Up turnaround strategy, with productivity gains driving adjusted operating margin expansion and improved free cash flow,” said Avon CEO Jan Zijderveld. “The push and pull strategies that we have spoken about, along with a bigger, on-trend stream of innovations, are working together to create significant value. As expected, revenues declined as we continued to make sharper choices designed to drive a healthier, more sustainable and more profitable business.”
Revenue decreased in all market segments compared to the third quarter of 2018: EMEA, down 10 percent; South Latin America, down 23 percent; North Latin America, down 11 percent; and Asia Pacific, down 12 percent.
Average Representative sales in constant dollars from reportable segments increased 4 percent, driven by increases in Latin America and Asia Pacific. Active Representatives increased 1 percent compared to second quarter 2019 and declined 10 percent versus third quarter 2018.
“Our focus on productivity led to a 4 percent improvement in average Representative sales with price/mix up 9 percent,” said Zijderveld. “We are restoring brand relevance and improving the effectiveness of our portfolios with innovation focused on Beauty. Our training programs are expanding and getting stronger based on what we have learned. Representatives are more productive and better practices are improving the quality of sales, both of which are crucial to sustainable, profitable growth.”
To read the full Avon Q3 2019 report, click here.
