News Column

Avon 2Q slumps as sales fall at home and abroad

July 31, 2014

NEW YORK, N.Y. (AP) — Avon's profit slumped by 40 percent in the second quarter with the struggling cosmetics company booking weak sales in the Americas.

Revenue in North America tumbled 20 percent, it fell 16 percent in Latin America and 13 percent in the Asia Pacific region.

Overall net income declined to $19 million, or 4 cents per share, from $31.9 million, or 7 cents per share, in the same quarter a year earlier.

Earnings, adjusted for restructuring costs and non-recurring costs, were 20 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 21 cents per share.

Total evenue dropped 13 percent to $2.19 billion also falling short of the $2.22 billion that Wall Street was looking for.

Shares of Avon Products Inc. have fallen $4.23, or 25 percent, to $12.99 since the beginning of the year, while the Standard & Poor's 500 index has risen 6.6 percent. The stock has decreased $9.87, or 43 percent, in the last 12 months.

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Source: Associated Press

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