Avon reports third-quarter 2017 results

Thursday, 2 November, 2017

 

Avon Products, Inc. (NYSE: AVP), a globally recognized leader in direct selling of beauty and related products, today announced its results for the quarter ended September 30, 2017.

 

"Our third quarter has been a productive period. While we saw mixed results, I am encouraged by the revenue improvement in many of our top 15 markets and the underlying business trends we are beginning to see. Our innovation pipeline is starting to gain traction and we are close to realizing our annual cost reduction milestone. We remain intensely focused on improving our Representative experience, which results in higher engagement and her success," said Sheri McCoy, Chief Executive Officer, Avon Products, Inc.

Sheri McCoy went on to say. "It will take time to fully realise the benefits from our near and long-term initiatives in this highly competitive mrket, but with the right team in place we are poised to accelerate the pace of our progress".

Commenting on behalf of the Board, Chan Galbato, non-executive Chairman of Avon Products' Board of Directors said, "The search for a new Chief Executive Officer for Avon is underway. The Board is pleased with the progress and the strong interest we are receiving". 

Highlights for Third Quarter of 2017:

  • Revenue increased 1% to $1.4 Billion; Relatively unchanged in constant dollars;
  • Within approximately $25 million of our annual cost savings target of $230m and on track to meet three-year goal;
  • Modest improvement in trends expected to continue in fourth quarter but results will fall below full year guidance.

During the third quarter of 2017, the Company recorded costs to implement restructuring within operating profit of approximately $6 million before and after tax, primarily related to the Transformation Plan. These restructuring costs have been reflected as an adjustment to GAAP results to arrive at Adjusted results and increased diluted earnings per share from continuing operations by $0.02.

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