Avon Products, Inc. (NYSE:AVP) announced its results for the quarter ended June 30, 2019.
Total reportable segment revenue decreased 12 percent in reported currency and 5 percent in constant dollars. Price/mix increased 9 percent. Active Representatives from reportable segments declined 10 percent, with decreases reported in all segments, and declined 3 percent compared to first-quarter 2019.
“In the second quarter, we continued to execute our Open Up strategy, with pricing and productivity gains which drove adjusted operating margin expansion and improved free cash flow,” said Jan Zijderveld, Avon CEO. “Our focus on productivity in the second quarter, including less discounting, more effective incentives, optimizing promotions and more favorable mix, led to a 5 percent improvement in Average Representative Sales with price/mix up 9 percent. We have continued to improve mix and tiering by increasing our focus on higher priced categories, like fragrance, skin care, and product bundles. Faster development and launches of on trend innovation has allowed us to leverage pricing power on new items.”
According to Zijderveld, recruiting and retention remain key areas of focus for the company. “Helping Her earn more money while we generate more profitable revenue is key to maintaining a healthier and happier Representative base and crucial to driving our future growth, Zijderveld said.
To view the full Avon Q2 financial report, click here.
