(Filed Under Financial and General Interest News). Direct-to-consumer giant Avon Products, Inc. reported first quarter revenues of $2.2 billion, a 13 percent drop from last year?s first quarter.
However, sales were up 3 percent on a local-currency basis due to the company's global growth. Active representation overall grew by 7 percent. Internationally, active representation grew by 7 percent in Latin America, 9 percent in Central/Eastern Europe, 5 percent is Asia-Pacific and 41 percent in China.
Revenue in the North American region declined by 11 percent, and units sold were 9 percent lower than last year, which the company attributed largely to a 24 percent decline in the home category. Although active representations remained flat, in March representation in the region grew by 51 percent, which the company attributed to aggressive recruiting efforts.
At the quarter's end, Avon's total debt had increased to $3.2 billion: a $678 million increase from the year-end level. During the quarter, Avon issued $850 million of notes, primarily to reduce outstanding commercial paper balances, according to the company.
According to Andrea Chung, chairman and CEO of Avon, the company plans to "leverage the inherent advantages of our direct selling business model during this time of uncertainty." She added: "We are offering consumers an increased assortment of 'smart value' product [...] we are also aggressively promoting representatives earnings opportunity to a wider audience."
Avon Products, Inc., the self-described "company for women," earns over $10 billion in annual revenue through its beauty, skincare, intimates and accessories categories, among others.see more
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